WICHITA, Kan. (KSNW) – Record-breaking inflation shows no signs of slowing down.
National consumer prices are at a 13-year-high over a 12 month period, with prices up over 5%.
Producer price inflation which measures the prices producers receive for their goods, is up over 7%. That’s the highest on record.
Wichita has yet to see the full impact, but one economy expert says it could be a good thing.
If you have been out shopping lately, you might have noticed prices are up on pretty much everything, but one local economic expert says, ‘don’t worry, this is not all bad.’
Jeremy Hill, director for the Center of Economic and Business Research at Wichita State University, said this inflation was expected.
“Inflation can be very bumpy for quite a while more than a year, but that doesn’t mean that the Federal Reserve has a handle on it. I don’t have any concern about the Federal Reserve handling of inflation,” said Hill.
“It is crazy how much things have gone up like everything,” said Dakota Riggs, Wichitan.
“Gas for one has gone up. I’m paying almost double a tank now, well not double, but it has gone up by like 10 bucks,” said MJ Saisi, who lives in Wichita.
Some people in Wichita said everywhere they look that prices are higher.
“If I wanted to go downtown or go to the bar or something like that, I have to be more cautious about it because it’s expensive. It’s gonna set me back at least $100 every time I want to go out,” said Riggs.
The government’s latest Consumer Price Index says prices for goods and services are up 5.4%compared to July of last year. That includes things like gas, food, cars, and even homes.
“If I want to go buy a new phone, same phone I had is almost $50 more than last year when I went to go buy it,” said Riggs.
While it may seem alarming, Hill said it’s a good sign for the US economy.
“A little bit of inflation as long as it is understood, expected and under control which in all of the signs is actually helping the US economy and local economy,” said Hill.
Hill said if you have a good amount of money in your saving and retirement accounts, you should be okay.
As far as a timeline when we could see prices go back down, Hill said it could be at least a year until the market stabilizes.