Inflation rates are rising and hitting wallets hard
NEW ORLEANS (WVUE) - Just about everywhere you go, you’ve probably noticed you’re spending more as consumer prices climb faster and higher than economists predicted.
The White House and Federal Reserve say the inflation we’re seeing is temporary, but how long will it last?
From the grocery store...
“When you go to pay it’s obvious you’re paying more, so yeah, it’s getting out of control,” Rica Gardere said. “The produce is a lot more I’ve noticed. I was just telling her the grapes were so much more than normal.”
“I definitely feel like it’s higher than ever,” Peyton McClellan said. “Stuff that should be a dollar is like three dollars, it’s ridiculous. Pasta definitely, ground beef, milk.”
To the pumps...
“Gas prices are a little bit too high,” DJ Joe with da Dreadz said. “If I put $30 in my truck right now, it ain’t going to half, it’s not.”
And everywhere in between..., prices are up.
The Labor Department says the consumer price level has increased 5.4% in the last 12 months, the largest year-to-year increase since 2008.
“It’s a little bit of circumstances, a little bit of economics, a little bit of policy that creates this because as you turn off spigots, as you have the dilemmas like what we have right now with a pandemic, trying to get these ships on loaded, demand, interest rates go up to kind of slow that down, and then all of a sudden inflation hits and then we go into a recession,” financial expert Mike Martinez said.
Martinez doesn’t have to break things down too much. We all know the world came to a halt with the pandemic, including production of goods, and now supply is behind.
“They’re trying to prepare it and put it into the stores, but as fast as they get to the store, they’re coming off the shelf,” Martinez said.
Like you’re seeing with the ports on the West Coast, the worker shortage is also playing a part.
“It doesn’t matter if you open up the yards for 24 hours a day, if you don’t have the guys to take them off and put them on a truck and you don’t have drivers to drive them,” Martinez said.
Plus Martinez says gas prices are also up partially because the Biden administration decided to reduce oil and gas production here and buy from other countries.
“You can’t close one spigot and not realize that it’s going to affect the whole country,” Martinez said. “If we are going to have to depend on oil from overseas, that’s going to cost more.”
Even with Social Security getting a big boost in 2022, or maybe even if you got a raise at work...
“You’re still not hedging inflation, you’re still fighting a losing battle,” Martinez said.
Martinez says this will not go away overnight. As far as food and other produced goods, the effect of the pandemic has to naturally work itself out.
As far as gas prices go, he says that’s policy change.
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