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What’s driving inflation? Bucknell prof says maybe not what you think

  • Scott LaMar
The inflation graph arrow is out of control. The officers are trying to bridle it. (Used clipping mask)

The inflation graph arrow is out of control. The officers are trying to bridle it. (Used clipping mask)

Airdate: July 5th, 2023

 

The Consumer Price Index, which measures inflation, was at 4% in May, the lowest rate of inflation since March of 2021, when prices started to rise. By comparison, the inflation rate was 8.6% in May, 2022.

Even though prices are stabilizing, they’re still higher than two years ago.

Other key sectors of the economy like unemployment is are doing well but consumers often judge the economy’s health on prices they’re paying and as a result, most polls show American consumers aren’t optimistic.

Two years later, there’s still disagreement on what caused the rising prices in the first place.

Bucknell University Professor of Economics Matias Vernengo on The Spark Wednesday blames the rearrangement of supply chains for inflating prices — something he says that started well before the pandemic in the U.S. but intensified by COVID restrictions in China.

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