Consumer prices are going up; experts explain why
BISMARCK, N.D. (KFYR) - The consumer price index rose 0.6 percent in March. That might sound like a small number but experts say it makes a big impact.
The consumer price index measures the cost of goods and services. When that number goes up, so do prices. Finance experts say this indicates two things.
The first is people are spending more money. The second is more money has been injected into the economy. Experts say the higher price index does indicate economic recovery.
“What you’re seeing is the trickledown effect of more money in the economy as well as people starting to travel and spend that money again and you’re seeing that reflected in higher prices,” said Securian Financial Services Advisor David Wald.
However, David Wald says the higher costs do have a downside. He says people who live on fixed incomes, such as unemployment benefits, could be hit by the higher costs of goods and services.
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