The True Cost of Inflation: Effects on Businesses and Consumers
Following the global pandemic, persistent inflation continues to significantly impact both consumers and businesses across America, with prices rising substantially above pre-pandemic levels despite declining from the June 2022 peak of 9.1%. Consumer behavior has shifted dramatically toward discount retailers, dollar stores, and secondhand markets as Americans adapt to higher costs for essentials like food, shelter, and energy. This economic environment has created new opportunities for businesses willing to adapt, particularly in the secondary market where discount retailers are experiencing unprecedented growth and demand for surplus inventory.
In this guide, you'll explore
- Inflation peaked at 9.1% in June 2022 and remains elevated at approximately 6% as of Q1 2023
- Essential costs have surged: electricity up 14.3%, gas utilities up 8.1%, and food prices up 3.3% year-over-year
- Dollar General opened over 1,000 new stores annually from 2020-2022 with plans for 1,050 more in 2023
- The US secondhand apparel market is projected to reach $82 billion by 2026
- Over 20% of Americans now consistently shop at dollar stores as buying habits shift toward discount options