by T.A. DeFeo
While the July and August Consumer Price Index numbers show “inflation has stalled,” a Georgia expert warns that “we’re not out of the woods yet.”
On Tuesday, the U.S. Bureau of Labor Statistics announced that the CPI rose 0.1% in August and 8.3% year-over-year.
“There are warning signals, including worldwide drought and continued energy disruptions, that inflation is not yet tamed,” Erik Randolph, the Georgia Center for Opportunity’s (GCO) director of research, said in a statement. “Moreover, Federal Reserve policy is refusing to allow the price level to come back down, meaning that most households will continue to contend with higher prices and lagging income growth.”
Meanwhile, a National Federation of Independent Business survey found optimism has improved, but inflation remains a challenge for small businesses.
“Our members appreciate the fact that Georgia is faring better than a lot of other states right now, but inflation and supply chain and labor issues are affecting businesses everywhere,” NFIB Georgia State Director Nathan Humphrey said in a statement. “Small business optimism may be improving, but owners are still frustrated that the economy isn’t improving more quickly.”
Randolph said President Joe Biden’s fiscal policy and overspending will only worsen inflation.
“Particularly for the poor, the working classes, and seniors living on a fixed income, this persistent inflation is devastating,” Randolph said. “Add to the mix that the U.S. and global economies are unsettled, including economic slowdowns in Europe and China. We could be in for a rough ride.”
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T.A. DeFeo is a contributor to The Center Square.