ROCHESTER, N.Y. (WROC) — Experts are saying the Consumer Price Index — released Tuesday — rose less than expected for November. It was projected to be up 0.3% but it actually rose 0.1%, with some local economists calling this good news.
However, the big cloud of inflation is lingering.
When compared to a year ago, the CPI shows inflation has increased to 7.1% — which is still high. The Producer Price Index also came out earlier this month, which showed producers are still paying more for goods and services.
Ethan Wade with Brighton Securities said the Consumer Price Index report is favorable, but “it tells us inflation is still high and we’re all still feeling it.”
He said the numbers did rise less than expected, but inflation is still up there at a time when Americans are still feeling the pinch, “at the gas pump, at the supermarket, with their utility bill,” said Wade.
In those same areas Wade said we’re feeling the ‘pinch’, costs actually went down a bit, which could be a forecast of things to come. Treasury Secretary Janet Yellen said to expect a reduction of inflation in 2023.
“To say that it won’t be an impact or it won’t have an effect next year. I think that’s hope,” Wade said in response to Yellen’s outlook.
For Nelson Habecker of East Avenue Liquor & Wine in Rochester, it’s been a rough few years. Inflation — and critically, the cost of diesel and shipping — is forcing prices to go up.
“When prices get up this high, I understand they need to make their profits as well, these trucks are running all over the place with the higher gas prices, they’ll attach a freight charge to us,” he said.
Habecker said that for 2023, he remains optimistic.
“We seem to drink in an economy whether it’s good or bad, whether we’re in good times or bad times,” said Habecker.
He added they are still fighting to keep prices lower for the customer (and are offering free gift wrapping for purchases).
Wade says from the pandemic, to a damaged supply chain, to Russia and Ukraine, the global and domestic economic woes are a rare perfect storm.
“I suspect we’re going to see this for some time to come,” said Wade.
A number of news outlets reported as a result of the CPI report, the stock market soared higher once the news broke.