EL PASO, Texas (KTSM) – An El Paso business is feeling the effects of inflation but the owner says he wont raise prices ahead of Christmas.

The owner of Lincolns Mini-Mall located at the Outlet Shoppes at El Paso says he’s expecting to lose money as the price of getting products in his store has risen.

“I’ve tried to hold my prices at the same pricing that I had unfortunately obviously when I sell through this stuff replenishing that is going to make it’s going to be a different story I’m going to be forced to probably increase prices,” said Lincoln.

Lincoln says he stocked up on products ahead of the holidays, but anything he needs to replenish costs more now than it did before.

“Some of the items I did have to pay more in shipping because the pricing was going up, but I still maintained my same pricing so that means my profit margin is reduced,” said Lincoln.

UTEP Economic Professor Tom Fullerton expects other businesses in the area to experience the same if they also choose not to raise prices.

“To the extent that raising prices was not feasible or was strategically decided not to raise prices that will reduce the margin between the cost of goods and the prices at which they are sold and that will affect cash flows and it will affect profitability margins,” said Fullerton.

While inflation is making products more expensive, Fullerton says the demand has not gone down.

“The recession was fairly short, it was disruptive and incomes have remained largely in tack and so demand has not suffered so the combination of product shortages and high demand is also causing inflation to be more problematic than it might have been,” said Fullerton.

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