Professor of Economics Stephen Hamilton discussed the implications of rising food prices for consumers who haven’t seen an increase in wages in recent years. While current salaries can go further for non-food items (such as appliances and electronics) than they could a decade ago, many consumers still feel the pressure of higher prices for everyday purchases.
“As a rule of thumb, prices go up by about 3 percent a year, and wages go up a little bit more than that — between 3 and 4,” said Stephen Hamilton, an economics professor at Cal Poly. “So in real terms, nothing ever gets any more expensive. But what has happened recently is that the prices have been going up, but the wages haven’t.”
Read the full article from the San Luis Obispo Tribune here: