New inflation report released, consumer prices are rising faster than expected
AUSTIN, Texas — Consumer prices are rising faster than expected, according to an inflation report released Thursday.
"This is pretty crazy. I've never seen anything like it. A year or two later and things are doubled. It's pretty wild," said Jonathan Howland, an Austin resident.
A new U.S. Labor Department report on inflation shows food prices climb, rent inflation remains rapid and gas prices fall slightly with overall energy costs expected to rise soon.
"Americans are squeezed by the cost of living. It's been true for years and folks don't need a report to tell them they’re being squeezed," said President Joe Biden during a press conference Thursday.
Mechele Dickerson, a law professor at UT Austin, said inflation is the price we're paying for not having a deep and catastrophic recession during the height of the COVID-19 pandemic.
"The government did a lot of things and it kept families afloat but at some point, you have to pay the price for that so that’s what we are seeing now," Dickerson said.
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Dickerson said there’s legislation recently passed by Congress to help with inflation.
"We're sort of in between because there's recent legislation, the inflation reduction act, so that's going to do a lot to help folks for example with prescription drugs. So, although medical costs are sort of going up now, in theory, they'll be going down soon, but were not there yet," Dickerson said.
Dickerson and other Austin residents are hopeful that over time inflation will slow down.
"It's kind of a natural thing to happen after the federal reserve puts rates at zero for a bunch of years and we have all the stimulus. So things are kind of overheated and now they'll have to calm down I guess," Howland said.
