By: Gerald P. Dwyer, Jr.
The CPI increased at a 5 percent rate over the past year, the highest rate in more than a decade. Fed officials are quick to suggest that this increase is temporary; largely a result of the economy’s post-pandemic re-opening. More likely, however, is that higher inflation rates will be with us for some time. There are many examples of how the economy’s re-opening is causing the measured rate of inflation to increase. Well-publicized shortages—in lumber, houses, computer processors, even the number of workers—have led to significant price increases in those markets. Some markets, such as gasoline, had substantial decreases in their prices a little over a year ago, so these rising prices are a return to pre-pandemic levels.
See more in this weeks Boone County Journal