Economist: Florida inflation rate hits higher than national average

ESCAMBIA COUNTY, Fla. — Amid rising costs, the U.S. economy continues to set inflation records — now at a 40-year high. 

Data shows prices accelerated in May at the fastest rate since 1981 and experts say it doesn’t look like it’s showing any signs of slowing down.

The prices of food, gas and most other goods and services jumped astronomically and a lot of people are feeling the pinch.

It’s down to necessities only, between groceries and gas, there is no more money left to squeeze.

Pensacola economist Dr. Rick Harper says the struggles will likely continue. 

“My view is that we’re increasingly at risk for a long battle with inflation because Russia’s invasion of Ukraine shows no signs of being reversed,” Dr. Harper said.

Inflation currently sits at 8.6% nationally but in Florida, it’s actually worse than that. 

“We’re at just over 11%,” Dr. Harper said. “A lot of that is due to the extreme increase in housing cost.”

He says Russia’s ongoing war with Ukraine continues to drive up prices. 

“If you expect inflation to be high that means that you as a business are going to raise prices because you know that your input costs are going up,” Dr. Harper said. “Everything from the trucks that you use to deliver your product, to the labor that is used to produce the product, those costs are all rising, so the longer it continues, the greater risk it is and I’m afraid given the stalemate in the Russia war against Ukraine, that we’re not seeing any prompt resolution.”

Dr. Harper says as the government tries to offset inflation with higher interest rates, we’re at risk for even more financial hardships. 

“If they raise interest rates too much then we run the risk of a very rapid slow down, perhaps even bursting of the bubble in the housing market, so that would throw us into a recession,” Dr. Harper said. “Because when we’re not building houses, there are no jobs for people in the construction sector, in the finance and insurance industry that provides the financing to buy houses, and of course, the car industry is enormously important as well.”

The Federal Reserve is set to meet this week in Washington.

Dr. Harper says he expects them to raise interest rates another half a percentage point.

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