Rising prices means Texans with higher wages are still losing buying power. Demand for workers is causing salaries to rise. But when you factor in current inflation (gas and food prices are especially higher), earning power is lower than it was in December 20-19!
Financial expert (Dr.) Ray Perryman explains. "Two things are causing it: Basic Supply and Demand. People have money and are ready to go out and spend it. Then you go to the supply side, we have not been able to fix the supply chain yet - so there are goods that people want and are not able to them, so that drives the prices up! What will make it calm down is that Americans are good at fixing problems. We'll fix the supply chain side in the next 2 or 3 months and the demand will settle down. I DO think this will go away. But in the next few months, I think this will still be with us."
Edgy Economy: Inflation and Interest Rates
Perryman says the U.S. has a good track record of fixing problems. He feels we'll still have to budget and live within means for months before it starts to get better.
The Federal Reserve also predicts this to be a temporary situation caused by a unique combination of events.
photo:GettyImages
Gas and food prices are risingPhoto: Getty Images North America