INDIANAPOLIS – Experts say some of the higher prices Hoosiers are seeing now are likely to continue rising for the next several months. And for some items, those prices are likely here to stay.
Experts say supply chain slowdowns and rising consumer demand are pushing prices up.
“They’re finally engaging in these transactions that they’ve been putting off for the past year due to the pandemic,” said Cathy Zhang, associate professor of economics at Purdue University.
Experts say the problems at the ports could continue quite a while, so inflation rates will likely remain high at least until the middle of next year. That means many prices will keep increasing.
“We’re going to have some goods that really go up quite a bit over the next six months,” said Kyle Anderson, economist at the IU Kelley School of Business.
Although some rising costs, like gas and energy prices, should eventually come back down, other higher prices we’re seeing now are likely here to stay, Anderson said.
“It really varies sector-by-sector and good-by-good so … if they’re really high now, there’s a really good chance they’ll come back down,” Anderson said. “Other things will just stabilize and where they are a year from now is about where they are right now.”
Experts say if you want to try to avoid some of the higher prices, it may be best to make purchases now that you know you’ll need to make in the next few months.
“You may have two, three, four months, quarters, maybe even a year or more of inflation,” said Matthew Will, associate professor of finance at the University of Indianapolis. “So you may want to make that purchase now.”
If you go that route, you’ll have to be prepared to deal with delays, Will said.
Despite the rising prices, Will said feels optimistic about the future of Indiana’s economy.
“We’ve had very low unemployment rates here in the state,” Will said. “So there’s plentiful of jobs … We’re actually considering getting a refund from the government on our taxes. So there’s a lot of good things happening in Indiana.”