By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The annual inflation rate in the US surged to 6.2% in October of 2021, the highest since November of 1990. Creighton University economist Ernie Goss said he's not surprised.
"Our surveys that we conduct here at Creighton University, both the Rural Mainstreet survey and the survey of supply managers, both of them contain Kansas as one of the states are showing, we haven't seen inflationary pressures like this in the 25 years we've been conducting the surveys," Goss said.
The Fed keeps saying the inflation will end. Goss doesn't think that will happen for a while, at least.
"We are going to see these supply chain disruptions and we are going to see these exceptional high inflationary pressures well into 2022," Goss said. "I don't envision any really, relief in terms of inflation, until the second half of 2022."
Energy costs recorded the biggest gain, but the inflation was broad based.
"Interestingly, the food increases haven't been as likely as we are going to see going forward," Goss said. "A lot of it is automobiles, so not everybody is seeing that, of course, if you're not buying or selling an automobile. Also, in terms of housing prices, a lot of it is housing increases. There again, you may not be seeing it, until you buy or sell a house."
The inflation number was well above the Fed's average annual 2% inflation target for a 7th consecutive month.