by T.A. DeFeo
Inflation will likely stick around for the foreseeable future, and the elevated inflation continues to worry Georgia businesses, groups said.
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers increased by 6.4% over the past 12 months, higher than anticipated. Additionally, the Producer Price Index increased by 6% over the same period.
“After a few months of apparently cooling inflation, it’s obvious that inflation is proving to be sticky and will be around for quite some time,” Erik Randolph, the Georgia Center for Opportunity’s director of research, said in a statement. “The core problem is that the Federal Reserve’s goal is merely to reduce the rate of inflation, not bring down the high prices we are already seeing.
“That means the cost of essentials like eggs and milk will remain elevated,” Randolph added. “The impoverished, lower income Americans, and seniors living on fixed incomes will continue to suffer the most.”
Meanwhile, the National Federation of Independent Business’ national NFIB Small Business Optimism Index revealed that more than one in four business owners (26%) said inflation was their top concern in operating their business.
“Georgia’s economy continues to improve, but small business owners remain cautious,” NFIB State Director Hunter Loggins said in an announcement. “Small business owners want certainty, but inflation and supply chain issues are still a challenge, and employers say they’re still having a tough time finding people to fill the positions that are available.”
In a tweet, U.S. Rep. Barry Loudermilk, R-Georgia, offered a simple solution to taming inflation.
“Reminder: Inflation was 1.4% before [President Joe] Biden took office and was 2.3% before the pandemic,” Loudermilk tweeted. He urged Biden to “cut spending and boost domestic energy production. The solution is that simple.”
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T.A. DeFeo is a contributor to The Center Square.