NORFOLK, Va. — Even the smallest of numbers over time can add up. That’s what’s happened to cause a rising inflation rate in America.
On Thursday, the U.S. Bureau of Labor Statistics (BLS) released the latest Consumer Price Index information from January 2022.
The new report noted a 0.6% "all items" increase from December to January, which means the country's unadjusted 12-month price index increase rose to 7.5%.
According to BLS, that's the largest 12-month increase since 1982.
Rising inflation costs are not new, but the new report outlines the impact the COVID-19 pandemic continues to have on the American economy.
“You at least a little," Bonnie Jernigan said, a supermarket shopper said when asked if price fluctuations change how she shops.
Simple luxuries are re-evaluated a little more closely, Jernigan said.
“We don't buy steaks anymore!" she laughed.
According to the report, it's the seventh time in the last ten months when the price index for "all items" has increased by more than 0.5%. Food, electricity and shelter make up the largest contributors of the increase, while other factors like gasoline alone still sit high at a 40% increase over the last 12 months.
As for the cause, it's a common one heard over the last two years. Supply chain issues from the COVID-19 pandemic are putting a strain on the country’s supply-and-demand relationship.
“The solution is the Federal Reserve tightening the economy by tightening money supply," Old Dominion University Economics professor Vinod Agarwal said.
Agarwal noted that the government must be careful about the policies it enacts to slow and drive demand.
“Try to slow down the economy, but you want to be cautious not to overdo it and cause a recession," he said.
He added that the serious concern is figuring out how long the inflation rate will continue in this trend, noting that the federal government only aims for about a 2-percent inflation rate over time.
The full report can be found on BLS' website.