SPRINGFIELD, Mass. (WWLP) – As prices continue to increase interest rates once again have been hiked up by the fed, to fight inflation.

“By that going up, it puts a little more pressure on everyone, interest rates will go up and it will affect mortgage loans, affect credit cards, etc. So just increasing the price of everything and it’s meant to tamper down the economy’s fast growth,” Mark Teed of Raymond James Financial told 22News.

Prices of goods and services are surging at the highest rates not seen in 40 years. As prices continue to increase, many Americans are finding that their paychecks aren’t going as far as they used to.

The high inflation rate can be attributed to three general causes which include increases in household demand and supply-chain shortages due to the pandemic, the war in Ukraine, and the presence of a strong labor market. Experts say that the shift away from spending on goods and toward services has affected inflation.

While consumers purchased more goods during the pandemic since they were stuck at home, many are now spending more on services, such as travel and concerts.

Teed added, “Inflation is the cruelest of all taxes and then the cure for inflation, it takes time. It’s hard to get it out of the system once its in the system.”

As for a recession, Teed says it’s hard to say whether we are in one just yet. That’s because despite the economy slowing down, unemployment remains low and the job market is still going strong.