Inflation has surged to nearly 7%, what does this mean for items across the board?

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CHICOPEE, Mass. (WWLP) – People finishing up their holiday shopping and preparing for festive meals can expect higher prices at the register.

The rate that prices are increasing is the highest its been in over 30 years. Prices are on the rise from what you buy in the grocery store to what you pay for rent.

According to the U.S. Department of Labor Statistics, the Consumer Price Index on all items rose 6.8 percent in the last 12 months.

“I think it’s ridiculous, the prices, because of this administration has basically taken a great economy and blown it out of the water. Just let us get back to work, let people get back to work,” said Mary Aidoo of West Springfield.

22News spoke with financial advisor Mark Teed and he believes that consumer spending during the pandemic has likely caused this high rate of inflation. “They had some money because of PPP…So that strong demand for products and a restraint in shipping, which meant there weren’t as many products” said Teed.

In October alone there was a 0.9 percent increase across the board and a 0.8 percent increase in November. The items contributing the most to this increase include gas, shelter, vehicles and food.

And for those traveling this holiday season, expect to see higher prices at the pump. Gas prices are up about a dollar more than this time last year.

According to Teed the main tool the Federal Reserve has is to increase rates immediately. It’s unclear if or when that will happen.


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