If things seem a bit more expensive these days, it’s not just your imagination. The Consumer Price Index jumped 5% in May, over the previous year, according to a report from the Labor Department, out today. That’s more than economists expected.
Prices on just about everything have gone up in recent months. But is it a blip as the economy regains its footing after the pandemic or will it last?
“It’s certainly something we need to be vigilant about and keep an eye on,” Waco-based economist Ray Perryman said. “But I think some of the fear is overblown for a variety of reasons. One of them is we make these comparisons on a year over year basis. And if you remember, last April and May, things were pretty much shut down. .. And then, of course, we’re opening up the economy. And with it, people are beginning to drive more, staying in more hotels, flying on more airlines. All of those things drive prices, what we call surge pricing sometimes. But it’s temporary and it works its way out.”
What you’ll hear in this interview:
– Factors contributing to the current rise in inflation
– What consumers can expect to experience
– How long the situation may last