SAN DIEGO — The idea of transitional inflation is certainly a pipe dream now that the consumer price index has hit its highest level in four decades.
“Inflation rose 7.9%,” said Alan Gin, an economics professor at the University of San Diego. “These are the prices in February compared to February 2021.”
Inflation has sent the cost of goods and services skyrocketing, negating any recent increases in wage inflation, according to Gin. Frustrated mumbles are now more of the talk of the town as gas stations see fuel prices hit $6 a gallon.
Speaking to FOX 5 on Thursday, Vons buyers were only too eager to vent their frustrations.
“For me, gas right now more than food prices, I don’t know,” said one buyer. “I’m going to come in and see, see what changed last week.”
“I’m trying to stay a little ignorant because I have my own stuff going on and I’m pretty much all I can handle right now,” another person said.
In addition to the alarming prices, surprisingly, Gin says he’s not worried about a recession because even with rising costs, people are still spending.
“The jobs report came out and showed we added 600,000 jobs,” he said. “The unemployment rate was below 4%, so it’s a tight labor market and as a result wages are rising. We have some strength in the economy that could withstand these higher prices.
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