Hold Your Wallet, Inflation is Happening Now in Central Minnesota
St. Cloud State Economics Professor and Dean, School of Public Affairs King Banaian joined me this week. Banaian says signs in inflation happening in Central Minnesota include employers being forced to hire workers at a higher wage than they are comfortable with and offering a signing bonus for those people to stay on at least 30 days.
He says this is leading to higher prices for the consumer, often times reduced hours for businesses that can't find the necessary workers and closing of the business because they have a lack of staffing.
Banaian says some believe these inflations are temporary while others feel this will lead to more and more inflation. He says economists don't have a clear answer yet.
Banaian says inflation isn't equal across the board and never is. He says some items will go in price more than others and that will be determined by where the shortages of goods and services is and what the demand for those goods and services are.
Items we discussed that have been in short supply during the pandemic include some car parts, furniture, and lumber. He says there are ships in other countries that have products ready to go but because of a backed up supply and the increased costs of shipping these items aren't making it to their destinations.
Banaian says this problem could rectify itself but the increased cost of shipping will lead to increased prices of products for consumers. If you'd like to listen to the complete conversation with King Banaian it is available below.