Inflation numbers are rising to highest in nearly 40 years, but how is it affecting 21Country?
FORT WAYNE, Ind. (WPTA) - As inflation hits a nearly 40-year high, many are struggling to buy the things they need and want. Inflation is up 7% over the last 12 months, economists say, it’s the largest jump since 1982.
What’s behind the surge you may ask? It’s a combination of pandemic-backed supply chain issues. In addition to that, high demand from consumers.
Rachel Blakeman from Purdue University Fort Wayne puts it in context for us. She says Inflation in it itself is a sign of a healthy economy, but what we are seeing right now, is an outpacing with goods.
“I think what you’re going to see is some folks deciding that they are not going to make some larger purchases,” said Blakeman. “It’s one of those things where you decide if you want to get that big TV for the Super Bowl next month. But the fact is you may not have the cash.”
Nationally, we see the following increases:
- Meat, Poultry, Fish, Eggs and at-home groceries - Up 12.5%
- Used Cars - Up 37.3%
- Rent - Up 3.8%
- Gas Prices - Up 49.6%
“It’s really about making those choices and what’s available to you in your budget. The challenge is for those who didn’t have much wiggle room to begin with. It’s hard to scale back because so many of these things are turning out to be many of our essential items,” said Blakeman.
The federal reserve plans to raise interest rates several times this year to try and fix the inflation problem. The Consumer Price Index (CPI) for January 2022 is scheduled to be released February 10.
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