Prices rise higher and faster than they have in 13 years
BISMARCK, N.D. (KFYR) - You’ve probably noticed price hikes while shopping over the last month.
That’s because prices for May rose by higher and faster than they have in 13 years.
According to the consumer price index, prices rose 5% in the span of a month, which is the fastest increase since just before the economy came crashing during the 2008 recession.
While this rate of inflation might sound troubling, financial experts say it’s due to the offset of supply and demand brought on by the pandemic.
“Factories, places were shut down during COVID, and that is creating a bottleneck of supply and demand. so there’s a lot of demand out there but not a lot of supply.
So I think, with the increased demand comes increased prices because there isn’t much for supply out there,” said Securian Financial Services Advisor David Wald.
Wald says once factories can catch up and supply and demand stabilizes, we should see prices creep back down to normal levels. However, he says government spending should be something to keep an eye on because it could lead to long term inflation.
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