Texas economy

US inflation highest in 40 years, East Texas economic experts warn there’s no respite in sight

TYLER, Texas (KLTV) — From groceries to the gas station, and just about everything in between, Americans are feeling the pinch of inflation.

Earlier this month, the Labor Department said consumer prices jumped 7.5% last month from a year earlier, the biggest year-over-year increase since February 1982.

Measured from December to January, inflation was 0.6%, like the previous month and more than economists had expected. Prices rose 0.7% from October to November and 0.9% from September to October.

Shortages of supplies and workers, heavy doses of federal aid, ultra-low interest rates and robust consumer spending have combined to send inflation skyrocketing over the past year.

“For most people, for a lot of people, this is the worst inflation they’ve ever seen,” said UT Tyler professor of management Harold Doty. “The Federal Reserve is targeting our inflation rate at around 2%. It’s a good steady beat. The problem is that it’s running at around 7.5% and so it’s not that inflation is bad, it’s that too much inflation is bad.

The rise in prices is not due to a single factor, but rather some sort of perfect storm.

“It affects all sectors of our economy. A lot of it is based on a global pandemic, but part of it is based on a new administration that sees things differently than the previous one, and it’s caused by global geopolitical events,” said the CEO of the Tyler Economic Development Council. , Scott Martinez.

“We should start to see, in the next two months, the real big increases fade away,” Doty said. “I won’t say it’s going to get any better at the moment, but I think in the next few months it should start to hurt less.”

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