LAS VEGAS (KLAS)– New government figures show beef prices are up 20 percent since last year. Furniture, up 12 percent. New cars, nearly 10 percent — the largest one year increase since 1975. Even rent for the average apartment has shot up by over a hundred dollars a month.
“Covid-19 has stretched global supply chains like never before,” Biden said.
In Baltimore, Wednesday President Biden insisted the problem is temporary — and touted the 17 billion dollars in the newly passed infrastructure bill that will go to modernize ports. But that won’t happen fast enough to ease the current supply crunch.
“We’ve got higher demand for goods at the same time we’re facing disruptions in the supplies to make those goods,” Biden added. “
Prices typically rise about 2 to 3 percent a year. But since a year ago they have shot up more than 6%.
“It’s not just a U.S. problem. This is a global problem,” said Mark Zandi, Moody’s Chief Economist.
Zandi thinks inflation should dissipate in 2022 if we keep the pandemic at bay.
There’s also a big-ticket item that he recommends holding off on purchasing right now.
“Cars. Vehicles. I mean, to be real though, even if you wanted to buy one, you might not be able to find one. There’s only – believe it or not, there are only 75,000 cars on dealer lots today. In a typical time, it’s closer to 500,000,” Zandi added.
Even if inflation starts to subside next year, it could take up to two years to iron out all the supply chain backups.