Economist: Inflation will stick around for a while

Published: Feb. 11, 2022 at 6:57 PM CST
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WACO, Texas (KWTX) - A dollar is not going as far as it used to. Many have noticed the cost of nearly everything continues to rise.

There is an end in sight, but it may not be as fast as many want it.

“But it is something we’re going to have to deal with until we get the supply chain sorted back out,” said Ray Perryman, president and CEO of the Perryman Group, an economic research firm.

Supply chain issues are mainly to blame for rising cost in the United States. Simply put, Perryman said, there is too much money and fewer options.

“A lot of people wanting to spend money, wages are up,” said Perryman. “And we have the too few goods, because the supply chain issues, the (semiconductor) chip issues.”

A newly released government report shows inflation is now at its highest rate in 40 years.

The people who are feeling it most are those with lower income and those on a fixed income.

“This is not the same thing as the inflation we saw 40 years ago. But, nonetheless, it is still a significant source of concern for consumers for the next few months,” said Perryman.

He expects this issue to last the next four-to-five months.

Signs of an economic rebound could come from some of the markets hit highest by supply chain issues.

“But I think, probably used cars will be one of the leading indicators this time around,” Perryman said. “And then to some extent some of the food and commodity prices.”

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