ROANOKE, Va. (WFXR) — Inflation is still on the rise. Within the past month, it increased by nine percent, according to a report that came out Tuesday from the Bureau of Labor Statistics.
A large portion of that nine percent is coming from the used car market, but there are other factors playing into recent inflation, especially now that it’s summertime.
“I was going to get shirts, three for 20-some dollars that are now three for 50-some dollars. I’d say everything is at least 25 to 50 percent more,” said Linda Gallion while shopping in Roanoke on Wednesday, July 14.
Over the past month, a third of inflation came from used cars, largely due to the microchip shortage which was brought on by the pandemic when production slowed. But the other two-thirds are in food, gas, leisure, entertainment, and hospitality.
“The main thing I’m doing to curb expenses is just not buying as much,” added Gallion.
Professor of Economics at Roanoke College, Alice Kassens, says this issue is temporary.
“Wherever you see these price increases, whether you’re in the market for cars or if you’re looking at food prices, things will settle back down to normal,” Kassens said. “And we’ll be seeing back to that two to two and a half percent inflation fairly soon, within the next six months or so.”
Lots of people and their money have been locked away during the pandemic. With the easing of restrictions and more people taking summer vacations, demand is up and prices are higher.
Kassens says the worst thing you can do is to start panic buying.
“They’ll start buying things up, worrying and stockpiling food or other items because they think they won’t be available in the future or that they’ll be available at a much higher price,” explained Kassens. “So that action, itself, actually drives the price up.”
According to Kassens, the best thing you can do is to wait patiently for prices and life to get back to normal.
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