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Dec. 11-17
Food Inflation
According to Morning Consult, a survey and research company, consumers are citing food prices as their number one economic concern. Although economists say those prices are showing signs of stabilization, the new price levels are of serious concern even if they stop rising.
All major food groups saw price inflation in 2022 when supply chain problems and issues impacting livestock and crops resulted in rapidly rising prices for food staples. Among those issues were the avian flu impact on eggs and the draught’s effect on wheat and other crops.
The U.S. Department of Agriculture notes, “In 2022, food prices increased by 9.9 percent. Food-at-home prices increased by 11.4 percent, while food-away-from-home prices increased by 7.7 percent.” The November 2023 numbers from USDA show food prices are growing more slowly in 2023 than in 2022 but still “at above historical-average rates.”
According to Supermarket News, a big factor is one you might have expected. All the talk of supply chains and avian flu have allowed food manufactures to drive up prices at the grocery store. Supermarket News adds that the collective gross margins of many prominent food and beverage suppliers, from Coca-Cola to Kellogg’s are up in part because they can easily pass along any price pressures on them to the consumer.
Housing Prices
The year-over-year price comparison for housing prices by the Federal Reserve Bank of New York once again shows Cape May County leading the state, with home price increases for October 2023 up 14.5% over the same month in 2022. The national average was 4.7%. Within New Jersey the next best report was for Camden County with a 12% increase. For Cape May County the year-over-year increase in September was 11%, which again topped all counties in the state.
The sales boom that began with the Covid pandemic has moderated but prices remain strong in the county compared with all other areas of the state. As further evidence, the county equalization table for 2023 shows a county-wide assessment level of $52 billion with a calculated true value total of $77 billion. Prices have risen so rapidly the ratio of assessed to true value for the county is 68%. The true value calculation is based on sales data in each municipality.
Blackout Risks
In November the Herald reported that a national watchdog agency warned of elevated risks of blackouts during extreme winter weather. New Jersey was included in the elevated risks because it is part of a 13-state transmission area known as PJM (Pennsylvania-Jersey-Maryland) that has “insufficient operating reserves for above normal conditions.”
Now a long-term reliability assessment pointing to the loss of 83 gigawatts of fossil fuel and nuclear generation puts much of the country at higher risk of blackouts. To remedy the increased risk, the North American Electric Reliability Corporation said in its December report that more natural gas capacity is needed, which is exactly the direction that energy policy is not moving in.
NERC says, “In recent years, we’ve witnessed a decline in reliability, and the future projection does not offer a clear path to securing the reliable electricity supply that is essential for the health, safety, and prosperity of our communities.”
Currently natural gas is responsible for 50% of New Jersey’s electricity generation.
Reports of reliability risks are increasing as demand for electricity rises, with national and state policy directives pushing for increased use of electricity.
Happenings
A second retail store for cannabis in the county received final approval by the state. Sea & Leaf in the North Cape May Shopping Center hopes to begin sales in February.
Avalon businessman Anthony Zurawski gained an extension of his approved subdivision at 21st Street and Ocean Drive. Zurawski said supply chain issues and high interest rates delayed the project, which is now approved through November 2024.
Avalon awarded a contract for new tennis courts at its 8th Street Sports Complex. The new courts replace three older tennis courts whose area was taken for pickleball expansion.
Legislation in Trenton seeks to codify clean energy targets into law. The bill sits in committee. The effort seeks to move beyond Gov. Phil Murphy’s executive orders, which can be cancelled when he leaves office.
The county awarded contracts for park and zoo concessions. All concessions are at no cost to the county and supply a portion of their revenue back to the county coffers.
A Spout Off asked about rumors that a girl was almost abducted at a school bus stop. The Herald discussed the issue with Lower Township police, who said the police did not find enough evidence that a crime had been committed.
Authorities are seeking the cause of a fire that destroyed a sailboat that had beached in Lower Township earlier in the fall.
Avalon approved price hikes at two municipally owned marinas. The borough council also updated operation regulations.
A group of 90-year leaseholders have sued the Down the Shore Campground alleging that the campground has engaged in behaviors that violate their leases.
Avalon is discussing potential changes to its outdoor dining regulations. The changes come ahead of the November expiration of state approval of outdoor dining liquor service during the pandemic.
The cost of removing aging pilings will raise the cost of Upper Township’s beach replenishment. The township’s costs went up when more beach erosion exposed hidden pilings.
Ocean City has approved employee and retired worker health plans for 2024. The city left the state plan in 2023 due to premium hikes.
Wildwood Crest will consider a revised Mahalo resort proposal in February. ICONA Chairman Eustace Mita has presented versions of his proposal multiple times before the borough Planning Board.
Whitesboro children had their annual Christmas party at the Martin Luther King Jr. Center with food, dance and gifts.
Spout Off of the Week
Dennis Township – Who’s responsible for the dead trees leaning over the sides of the road? Especially on Rt.55 and Rt.9. Public works or the electric company? I see a lot of them hanging on wires also. Very dangerous for motorists and causing a fire.
Read more spouts at spoutoff.capemaycountyherald.com.
