New numbers from the federal government show how the pandemic is influencing consumer choices in Virginia.
The consumer price index for May shows what happens when the Virginia economy is on hiatus and people are locked in their homes. The price of medical care and dairy products rose while the cost of gasoline and car insurance plummeted.
Michael Farren at the Mercatus Center notes that the cost of bread went up in April but fell in May.
“Everyone who is baking sourdough bread at home is essentially dropping the price of bread," he explains. "And we’re actually seeing a measurable economic impact as a result of people’s home-baking exploits.”
Numbers from the Bureau of Labor Statistics show the cost of apparel also fell in May. But Terry Rephann at the Weldon Cooper Center for Public Service says the latest retail sales numbers show that’s a trend that’s already fallen out of fashion.
"Apparel is something that is highly perishable because of style and things go out of style pretty rapidly in the fashion industry," says Rephann. "So there are a lot of bargains to be had and so there was a surge also in that category.”
Fashion isn’t the only potential deal created by the pandemic. The consumer price index for the Mid-Atlantic region also shows the cost of new and used cars is heading down the road to lower prices.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
