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TOP STORIES OF ’21 — NO. 3: Inflation, supply chain issues hit Central Illinois | Local Business






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A pallet loader moves large quantities of food between storage locations at Midwest Food Bank in Normal. Supply chain issues have affected distributors of almost every item, from electronics to food, and even charity operations.




The Pantagraph is counting down the Top 10 stories of 2021. This is No. 3. What do you think are the top stories of the year? Join our conversation here.

BLOOMINGTON – Despite the widespread availability of COVID-19 vaccines across the country this year, leading to many businesses and events reopening to full capacity, the pandemic has still controlled several facets of the economy.

Outbreaks of the coronavirus in domestic and international manufacturing plants created pauses and bottlenecks in the production of numerous items.

Necessary products, everyday items and luxurious goods have been backed up in the global supply chain, creating a shortage of materials while demand grew.



Just as Americans and Europeans were eagerly awaiting their most normal holiday season in a couple of years, the omicron variant has unleashed a fresh round of fear and uncertainty for travelers, shoppers, party-goers and their economies as a whole.







The continued risks of COVID and the emergence of the delta and omicron variants have kept workers wary about returning to jobs for the same pay rates and benefits.

The new variants also caused the first and second quarter economic growths to halt over late summer and fall.






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Steve Kant, co-owner of OK Appliance, is shown in his Bloomington store. Issues with the supply chain have had a widespread impact on area businesses.




Steve Kant, co-owner of OK Appliance in Bloomington, said in August that the store was “nowhere close” to back to normal.

The store has experienced shortages in refrigerators and other necessary components to larger products.

Manufacturers that the company works with “shut the plants down for two months, didn’t build anything, so they blew through a lot of whatever they had hidden away in inventory,” Kant told The Pantagraph at the time.

As supply decreased and demand increased, the U.S. has seen its largest inflation rate in nearly four decades.


Chicken wing ‘shortage’ comes to roost in Southern Illinois

Prices for gasoline, used and new vehicles, energy services, and food products such as cooking oil, beef and chicken, soared in mid-to late 2021.

The U.S. Labor Department said in December that consumer prices increased 6.8% in November compared to a year ago.

Those price increases have largely affected low-income households, as costs for everyday necessities have continued to grow.

All the while, experts are unsure yet how the omicron variant will affect inflation and the supply chain holdups in the long term, but for as long as the pandemic lingers on, it is likely that inflation will, too.

Contact Kade Heather at 309-820-3256. Follow him on Twitter: @kadeheather

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