Hawkeye Reporter

The recent inflation numbers have shown that inflation is surging across all sectors of the economy with Atlanta Federal Reserve Chair Raphael Bostic being the first fed official to state the predicament could get dire.

Bostic stated that inflation will last longer than expected and should no longer be considered “transitory” in a talk to the Peterson Institute for International Economics on Oct. 12.

Bostic said that the "evidence is mounting that price pressures have broadened beyond the handful of items most directly connected to supply chain issues or the reopening of the services sector. If we scrutinize that report, we see that three-quarters of the CPI consumer market basket rose at rates higher than 3% during August.”

Thus, it is grounds to adjust the Fed's emergency monetary policy, he added. Bostic serves as a voting member of the Federal Reserve’s monetary policy-setting Federal Open Market Committee, the body equipped to make such adjustments.

Sen. Joni Ernst (R-IA) declined to comment when asked her thoughts on curbing inflation by the Hawkeye Reporter.

Fed Chairman Jerome Powell has gone on record that the inflation will be temporary because of the post-COVID-19 reopening of the economy, according to Reuters reporetd Oct. 13. But with inflation rising, with a 5.4% consumer price index increase in September, Powell’s assertion is proving to be invalid.  

The consumer price index report states that prices have climbed by 5.4% since last year, which is the biggest increase since January 1991, CNBC reported. The surge was due in large part to a spike in fuel, food and housing prices.

Compared to last year, the price of gas has increased by 42.1%, rental cars by 42.9%, used cars by 24.4%, hotels by 18%, TVs by 12.7%, furniture by 11.2%, select grocery items by 10.5%, new cars by 8.2%, appliances by 7.1%, electricity by 5.2%, restaurant prices by 4.7% and rent by 2.9%.

During the same period, wages have grown by just 4.6%, meaning that on average, consumer’s ability to buy goods has dropped significantly.

 “The rise in shelter costs will exacerbate the negative financial impact so many households are feeling from higher prices,” Bankrate's Chief Financial Analyst Greg McBride said, according to CNBC.