BRIGHTON, N.Y. (WROC) — The September numbers on inflation were released this week and in short, there’s not much sign of relief. While gas prices have seen a decline — core inflation is at a 40-year high. Food and energy prices are still up there, and many locally are feeling it.
Inflation jumped by 8.2% for September when compared to this time last year, but it was a slight decline from August.
On Wednesday, the Producer Price Index was released: What are the costs to the businesses who are selling products? On Thursday, the Consumer Price Index was released: What are the costs that customers are seeing? Are those prices going up?
“We’re at historic multi-decade historic highs,” said Ethan Wade with Brighton Securities.
He said much of the inflation issues come down to supply and demand.
“And for the past couple of years going through the pandemic — printed out a lot of money for Americans,” he said.
At the time he says, it was helpful, but, “When we have more dollars for Americans chasing fewer goods, naturally, we’re going to see an increase in prices,” he said.
But how do we remedy this? Wade says it’s a change in habits. Remember he said, “the best cure for high prices, is high prices”.
This means, “when prices go up if we want them to go down, we need to stop paying for those goods,” said Wade.
In other words, suppliers and businesses have no reason to lower prices if we keep paying high prices for it.
Mortgage rates were another concern for September. Wade says we are at the highest 30-year fixed mortgage rates we’ve seen in a long time. But it’s been worse.
“We are not back to where we were in the late 1970s and early 1980s where folks would be paying a mortgage for 18, 19%,” he said.
However, regarding our current rates: “When we compare it to the end of last year, and mortgage rates between three and four, that’s almost a 100% increase in nine and a half months,” he said.
When will this tide turn on this? Wade says anyone who gives you an answer is guessing.
“Anyone saying ‘it’s going to happen in six months, it’s going to happen in three months’, they’re giving you their opinion,” he said.