Rising inflation across the nation impacts Brazos Valley

Updated: Jun. 15, 2021 at 6:02 PM CDT
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BRYAN, Texas (KBTX) - Consumer prices rose in May at the fastest rate since 2008, and economists say it’s the result of bottlenecks in supply chains and strong consumer demand as the economy bounces back. But for some Brazos Valley residents, it was an unexpected jump in prices as they continue to recover from the effects of the pandemic.

Dennis Jansen, Texas A&M Private Enterprise Research Center Director and expert economist joined First News at Four to explain what the inflation means for the average consumer.

“What is of concern to some people is that the inflation rate, not only is it high but it’s been growing, it’s been accelerating,” said Jansen.

Jansen said it takes time for these prices to grow, but eventually it levels off and returns to a more normal rate and price level.

“I would say I don’t see that happening anytime in the next month or two,” said Jansen

Recently the prices of airlines, car rentals, oil and gas, housing and other commodities have been rising. Jansen said this increase in prices will eventually lead to an increase in wages.

“There’s a lot of talk about shortages of workers and workers not wanting jobs at the wage rate,” said Jansen. “Well the solution to that is wages going up.”

For the full interview, watch the video player above.

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