As consumer prices rise, Kansas City-area economist suggests avoiding 3 certain markets
KANSAS CITY, Mo. – Inflation jumped 5% in May, the fastest year-over-year pace since 2008.
As rising demand and limited supply push prices up, William Black, associate professor of economics and law at the University of Missouri, Kansas City, said inflation isn’t happening everywhere. .
Black says if you can, avoid buying those three things: a house, a car, or a flight for your next vacation.
“These are the big three that really contributed to the numbers that we saw,” Black said.
As the United States experiences a strong recovery, the lack of supply and strong demand are pushing up prices for the second month in a row.
“From an economist point of view, it’s really fascinating because we haven’t seen, A, inflation but, B, we haven’t seen this kind of economy and by that I mean supply chain issues everywhere, ”Black said.
Supply chain disruptions have occurred repeatedly throughout the COVID-19 pandemic. Manufacturers have cut back on production and now they are catching up.
“The ‘just in time idea’ was to have really minimal inventory and things will happen just in time for the production process and that’s fine as long as you don’t have any disruptions in the supply chain.” , Black said.
Economists believe this period of inflation is likely transient, that is, temporary. However, some markets are only pushing up prices.
“Honestly, it’s probably not even reached yet,” said JoAnne Weeks, director of the vacation division at Acendas Travel.
For the travel industry, flights and prices are taking off, trying to meet the demand for travel.
“Honestly we don’t see them going down anytime soon because the travel trend is going to keep going up, and it’s all based on supply and demand and you have people who have been, you know, turned away for a year and a half now, ”Weeks said.
Black says people shouldn’t focus too much on Consumer Price Index reports. While prices are on the rise, he says it probably won’t last.