Inflation has continued to be a major concern for Americans. And for a good reason: the consumer price index, which measures prices paid by the typical consumer, saw a historic increase. It rose 6.2% year over year for October according to the U.S. Bureau of Labor Statistics. This represents the largest increase in over 30 years.
In other words, the impact on household budgets is real. For instance, prices are up significantly for everything from meat to gasoline to vehicles. As a result, individuals and families are paying more and feeling the strain on their budget.
An Unprecedented Situation
High inflation can be a noticeable drain to any household. The accelerated rate of inflation is adding up fast for real world living costs. Worse yet, all groups are being impacted regardless of how much they’ve already been effected economically from the COVID-19 pandemic. Lower income households and retirees on fixed incomes especially feel their buying power erode.
Individuals and families already struggling with the economic impact from the pandemic are already feeling even more pressure. Unfortunately for consumers, this historic increase in inflation is also occurring at the same time as the holiday season when most households have traditionally higher spending needs. As a result, the general public has an intense interest in the topic and forecasting the outlook.
Expert Analysis on Inflation from ISEG
KSN, the NBC affiliate station serving most of Kansas, needed an economics expert who could explain the situation. As a result, they turned to the experts at the Institute for the Study of Economic Growth (ISEG). On November 15, 2021, reporter Jessica Watson interviewed Dr. Ted Bolema, Executive Director of ISEG, on air for a KNS TV News report. Dr. Bolema help their audience understand the unique complexities contributing to the current inflation rates.
KSN’s report didn’t just examine how the so called “sticker shock” was affecting residents in the community. It also explored the root causes and whether the impact would be felt through the holiday season and beyond. Dr. Bolema explained why we are seeing record inflation locally and across the nation. He also explained to Warren why it might take some time for prices to adjust.
They developed all these stimulus policies that assumed a major shutdown of the economy and certain sectors were hit pretty hard but other sectors not much at all. And yet the stimulus funds were provided pretty much everywhere, so a lot of people had more money to spend than before.
Watch Sticker shock: is inflation here to stay?
Watch Dr. Bolema’s entire appearance from November 15 below or at KSN News.