WEST SPRINGFIELD, Mass (WWLP) – Fears over a possible recession are growing, as the country battles high inflation and low consumer confidence.
“The gas, I’m telling you. It’s really killing, but what can we do?” asked Henry Campanini.
Record High prices for everyday items continue to burden U-S communities. The US Bureau of Labor Statistics reported the Consumer Price Index increased by one percent in May, in comparison to a 0.3 percent increase in April. The goods with the largest rise over the past month include shelter, gasoline, and food. Consumers are noticing.
“It was pretty high. I only got a few things, it put me over 60 bucks,” said Eric Tansil
While your receipt from the grocery store can be discouraging, financial experts say there is hope for economic improvement.
“There’s hope that inflation should lower,” said Matt Farkas, a senior vice president and the head of fixed income with the St. Germain Group.
The pandemic and war in Ukraine are two major events that set economies behind. However, Farkus explained to 22News why an economic recession is unlikely.
“The job market is quite strong as well, we’re starting to see wage gain in a way that we haven’t seen in a long time. So with a healthy job market and this phenomenon of people wanting to get out and to spend and to travel, I would be surprised if we had a near-term recession,” said Farkus.
Additionally, the Federal Reserve has raised rates which will begin to keep inflation at bay and eventually provide relief to consumers.