Swenson: Lowered production causing inflation

David SwensonDavid Swenson, research scientist, was interviewed for a Nov. 19 WOI TV story, "'Instead of beef, I switch to pork': ISU economist reveals tips to manage inflation."

The country's inflation rate is up 6.2% compared to this time last year, which is the highest increase since November of 1990, according to the U.S. Bureau of Labor Statistics.

Swenson said this is happening "because the pandemic has lowered the level of production of many of the key commodities that we use and consume in our households and businesses."

He said the inflation we're experiencing now is not typical—some items are rising in price sharply while others are not.

Swenson said some of the factors contributing to some goods prices going up are related to transportation or logistics. However, he said it's best to prepare to deal with current conditions for a while. 

 "Part of the higher prices is we're paying more for labor than we were before," Swenson said.  "Some of that's going to be permanent because we're not going to cut people's wages."

This story also covered by:
KCRG, Nov. 21