Consumer price index shows inflation rose 7.9 percent in last 12 months
TYLER, Texas (KLTV) - Inflation is a problem across the country. Over the past twelve months, the Consumer Price Index shows consumer inflation increased a total of 7.9 percent, the sharpest spike since 1982.
Economist and President of The Perryman Group, Ray Perryman, said a big part of this increase is because of supply chain issues.
“A lot of this is because of supply chain problems that we’ve had with the pandemic. And coming out of the pandemic, and the fact that a lot of people came out of the pandemic with a lot of money that they were suddenly free to go out and spend, so that combination sort of gave us too much money chasing too few goods,” Perryman said.
To complicate matters further, the crises in Ukraine has caused more price spikes.
“And the big run up in prices that’s happened in the last two or three weeks is not in these numbers. These numbers were gathered in the middle of February, so we’ll probably see a little bit higher numbers next month,” said Perryman.
The Consumer Price Index also shows gasoline alone spiked 6.6 percent last month. But it is not the only thing that increased.
“Everybody focuses on gasoline, but it impacts everything, that’s what we need to remember. Food prices all sorts of things are impacted right now by these supply chain issues,” Perryman said.
Grocery costs are up by 1.4 percent according to the Consumer Price Index. Perryman said he does believe inflation should come down later this year.
“But we should see inflation starting to come down some by the end of the year, well actually by probably the end of the third quarter if we can, assuming the Ukrainian thing doesn’t drag on for an extended period of time and cause a permanent increase in oil prices and that sort of thing,” said Perryman.
To view the Consumer Price Index, click here.
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