- Neighbors locally and nationwide are paying 2.8% more than they were last year according to new data from the Federal Reserve.
- An area financial planner says it's due to companies catching up from debt due to inflation and supply chain issues.
- Watch to see what the Fed expects the price of produce to do this year:
BROADCAST TRANSCRIPT:
We have all heard that inflation is going down, but how come many are still paying a high price in the check out line?
New data from the Federal Reserve shows our neighbors in Tallahassee and nationwide are paying more than they were a year ago for every day essentials.
"It's kinda crazy where we're at right now," Philip Ambrose said.
He's a financial planner with Rosenberg Alvis Ambrose Wealth Management.
He said the rising price of goods is something neighbors 40 and under are struggling with.
"Clients are having to pull back some of their contributions to their accounts to make sure they have enough to do their budget monthly," Ambrose said.
Data released from the Federal Reserve shows that the personal consumption expenditure price index rose by 2.7% from January of last year. That's a number that measures how much neighbors spend on essentials like food, gas, other products and services.
Despite inflation slowing 0.2% from December, Ambrose said there is one major reason that prices haven't dropped.
Any good corporation uses debt to fund their manufacturing and activities," Ambrose said. "If debt is high, if they have to borrow at a higher rate, they still have to have prices at a higher rate."
Data shows prices of food are going up.
The Fed expects the price of fresh produce to go up 2% this year.
The price of bread is up 10¢ from last month.
Ambrose said there are a couple ways neighbors can stretch their dollar.
"Set a budget, stick to it, be disciplined," Ambrose said. "During this time, make sure you're staying ahead of your money, shop at discount grocers or places you haven't gone before."
The Fed did release some good news for neighbors hitting the gas pump.
Experts said the price of energy dropped 1.4% since last month and 4.9% since last year.
