News 8 spoke with Matthew Will, a finance associate professor at the University of Indianapolis.
Hoosiers are seeing examples of this trend all over.
It’s stretching the pockets thin for Ted Elkins, who is on a fixed income, and other Hoosiers. Elkins said, “I have had to reduce my driving because of the gasoline prices. I have to shop for groceries carefully because what used to be $50 worth of groceries is over $100 in groceries.”
The finance professor said, “Automobiles are up 37% since last year. That’s for used automobiles. For things like poultry and meat, pork, those items are up over 10%. So, if someone in Indianapolis on a fixed budget is trying to buy their groceries, they are going to see they had less buying power than they did just a few months ago, and definitely much more than a year ago.”
According to the U.S. Bureau of Labor Statistics, consumer prices increased by 7% over the last 12 months, the most since 1982, during the recovery from the coronavirus pandemic’s recession.
“The cause of inflation is very simple. It is too much cash and not enough stuff. So, when you go to the store to buy something, if you have lots of money but you don’t have any stuff to buy, that is going to cause inflation,” Will said.
Challenges of COVID-19, as well as supply chain shortages, contribute to the global economy being out of whack. Unfortunately, for now, this is the reality.
“Truth is, when you go to the store, you’re going to pay more for everything,” Will said.