The record-high inflation in decades and skyrocketing prices had different effects on different groups within society, and while those with high incomes were able to cope with the higher prices, those with low incomes are worse off because they have less disposable income than before.
Demand-pull inflation occurs when the overall level of demand for goods and services in an economy outpaces the ability of producers to supply those goods and services. This is exactly what is happening with the orange and citrus grove industry. There isn’t enough supply of oranges to meet the demand, which will surely cause the price of oranges and orange juice at the grocery stores to increase.
In a recent projection that was made public recently by the United States Department of Agriculture, it is anticipated that the state of Florida would produce 51% fewer oranges during the 2022–2023 season in comparison to the previous year. Since the 1936–1937 crop year, that is the lowest amount of oranges that the state has ever produced in a single season.
One of the reasons for the low supply of oranges is due to a bacterial disease that is attacking the crops, and the other is Hurricanes Ian and Nicole, which devastated the area.
Many are saying they have already noticed that the prices of oranges and orange juice have gone up, and analysts are informing consumers not to expect the price of oranges to go down anytime soon since they expect this upward trend to continue in 2023 as well.