SIOUX CITY, Iowa (KCAU) — Inflation is at its highest rate in 40 years as the Department of Labor reported prices jumped seven percent in December.

Mike Cunningham, the owner of The Butcher Shop in Sioux City, said while his expenses on food have been consistent, ongoing supply chain problems could change that.

“We’ll see what happens,” Cunningham said. “If the labor problems continue and the transportation problems continue, prices will gradually go up.”

While some of the issues from 2021 are still present in the new year, he said he’s optimistic better days are ahead.

“I think things are going to get better after this month,” Cunningham said. “I think things will start getting back to normal hopefully. “

It’s not just for-profit businesses that are being affected. Jacob Wandersheid is the executive director of the Food Bank of Siouxland. He said prices on food rose 10 percent last year compared to 2020 and the costs have not slowed down.

“What that means for our clients is that their food budget does not extend as long or as far as it had in the middle of the summer and so again they kind of turn back and look for food pantry assistance,” Wandersheid said.

Wanderscheid said the supply chain issues hurt grocery stores who the Food Bank depends on for donations.

“If they have a little less product overall, they’re going to want to hang onto that product a little longer to sell,” Wanderscheid said. “Not to say that stores don’t have product. It’s just not as full as it once was.”

Wandersheid said nearly half of the foodbank’s donations come from the community, and he’s concerned that number will be much lower if inflation and supply chain problems continue.