MEMPHIS, Tenn. — If you're tired of paying extra at the gas pump and at the grocery store, it might be some time before prices start going down.
Prices on all items have risen 7% in the last year, according to the US Bureau of Labor Statistics.
The US Labor Department reported the country has not seen an inflation rate like this since June 1982.
"We stimulated the economy dramatically in 2020 and we did it because the nation was facing a major recession as a result to Covid," Dr. John Gnuschke, economist and president of 901 Economics, said.
Gnuschke said since wages have gone up recently, people have more money, so the cost of goods has increased.
"In order to stop inflation, you have to slow the economy down," Gnuschke said. "When you slow the economy down there are going to be fewer jobs, fewer pay raises and so there are other implications in what we have to do to slow this economy."
The gasoline index rose 49.6% and food prices went up 6.3% in the last year. Contributing factors to these include demand, supply chain issues, and shortages.
Gnuschke said the millions of people who have quit their jobs in recent months have also affected prices for consumers.
"The 'Big Quit' as people refer to it just simply means there are fewer workers out there and when there are fewer workers out there employers are forced to pay more money," Gnuschke said. "They have one of two ways to offset that increase in wages. They have to be more productive which they find very difficult to do or they have to increase the price of their products and that's what we're seeing with inflation measures."
Gnuscke said once we get control of fuel prices then everything else will begin to moderate.