(SPONSORED) — The most recent inflation report did not show many positive signs when it comes to what we spend on day-to-day necessities. UCCS Economic Expert, Tatiana Bailey, PHD, explains where we saw the highest price increases and how it could impact us in the future.
Bailey said that many analysts were thinking that the Consumer Price Index (CPI) was going to remain flat or decline, however the CPI still showed high inflation at 8.3% year-over-year.
The components that increased the most were shelter, food, and medical care. These are what Bailey said economists call “inelastic goods,” because people’s needs for these goods do not change. Bailey said that things could have been worse, but gasoline declined in August, which helped moderate the overall increase.
Bailey notes that there are structural changes happening in the global economy, and that means inflation could stay elevated for many months and possibly years to come.