Inflation skyrockets to 40-year high & WKU Dr. sees no immediate end
BOWLING GREEN, KY. – Rising prices continue hitting local families and small businesses. In fact, inflation is the highest it’s been in 40 years.
Before the pandemic, our nation’s inflation averaged less than two percent for over a decade. Now, that rate is 7.5 percent. Southcentral Kentuckians are feeling the impact.
Governor Beshear said this Wednesday that, “[Kentuckians are] now experiencing the most significant inflation we’ve seen in decades. That makes it tougher for our families to get by, and it threatens our small businesses if people can’t afford to keep purchasing things that they need. I’ve had enough. We’ve all had enough.”
Professor of Finance Dr. Chhachhi has taught finance for over 27 years, teaching and publishing his research. He said inflation rates have skyrocketed in the past year. He said a local family will spend about $300 more a month at the grocery store or eating out compared to just last year.
“That’s going to have an impact on your pocketbook and mine,” said Chhachhi. “And for people who have a fixed income or don’t have as much savings, they’re going to feel the brunt of it because it’s a significant amount.”
He believes the cause of such a steep inflation spike really boils down to basic supply and demand.
“Most of us were dealing with lockdowns or semi-lockdowns in 2020, so the pent-up demand in 2021 was unleashed and we all wanted to go out and buy that TV, buy that new car or used car, buy that phone, you name it,” he explained. “So, the demand went up but that increased demand hit against supply issues that popped up because of COVID.”
Chhachhi predicts inflation will stay increased or even rise over the summer before it plateaus.
“By the end of this year in 2022 we may start seeing moderation, but it very well could be the end of 2023 or the middle of 2023 before we start seeing a meaningful decline,” he believes.