ALBANY, N.Y. (NEWS10) — A rise in the consumer price index has continued fears of inflation, so what does this mean for the average consumer?
The consumer price index measures the costs of goods and services in the country. Since last month, prices rose 0.6 percent that’s higher than economists predicted. One expert NEWS 10 spoke with says relief is coming.
What’s causing the consumer price index to rise? The government blames those high gas prices this summer, some of which broke the $4 dollar per gallon mark.
Professor Kajal Lahiri at SUNY Albany says though things look rough, we are generally in good shape, thanks to the feds tactics of raising interest rates.
“What the federal reserve has been able to do this time is landing at softly . We haven’t had the recession” the economics professor told NEWS 10’s Zion Decoteau.
He says though consumers might hate the higher interest rates, the measures are economically necessary and only temporary.
As for what the average consumer can do, Lahiri says substitution and savvy shopping are key.
“If the price of coffee increases, we drink more tea. So we have to adjust our consumption pattern depending on the relative prices” said the professor.
Lahiri added that though we are discontented, the US economy is still in a better place than China and India. He says the Fed has been successful because we in that America has avoided recession.
“In terms of the industrialized countries, USA is in a better shape than any other country right now. So we feel unhappy domestically, but if you look around, I think we should not be that depressed actually” the economist conveyed.
Now there is good news ahead. The professor says overall inflation rates are on the decline. In 2020, inflation hit record highs near 9 percent. We are now near 4 percent, just above the fed’s 2 percent goal.