Amarillo experts share why inflation rate is experiencing higher numbers since 2008

Published: Jul. 19, 2021 at 7:58 PM CDT|Updated: Jul. 19, 2021 at 8:22 PM CDT
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AMARILLO, Texas (KFDA) - If you have noticed higher prices at the grocery store, gas station or eating out the reason behind it is inflation.

Consumer prices jumped 4.7 percent since February of 2020, according to the US. Labor Department.

Food is up to 5.4 percent, outpacing normal inflation.

Inflation rate highest since 2008
Inflation rate highest since 2008(U.S. Bureau of Labor Statistics)

Dr. Justin Benavidiz, Assistant Professor, Texas A&M AgriLife Research and Extension Center says the cause is due to supply and demand.

People want more stuff and at the same time there is an inability to produce more stuff.

“That demand for more goods is being coupled with a shorter supply of goods, so there’s a cost push from having fewer goods available and therefore being more expensive and then a demand-pull as more people want more goods, they have to get more expensive in order to ration those goods,” said Benavidiz.

The research center says with more money going into the economy from stimulus checks and unemployment, prices need to go up.

“So, as all that new money flows into the economy people have more purchasing power, and so they want to go out and buy new TV’s and they’ll buy more food, eat out a little but more and so that puts a strain on supply, which means prices need to go up,” said Benavidiz.

Once stimulus checks are spent, and people are back to normal working it should liquidate a lot of the current inflation issues we are seeing.

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