PITTSBURGH (Newsradio KDKA) - The Bureau of Labor Statistics reported inflation hit a 39-year high in December of 2021.
"Prices are up about 7% over the past year," PNC chief economist Gus Faucher said during the KDKA Radio Morning Show Thursday. "But I think we will see inflation slowing over the course of 2022, as some of these supply chain difficulties get themselves worked out."
Faucher blames the pandemic and the stimulus checks from the federal government as the main cause for the rise in prices, as businesses cannot keep up with demand.
"At this point, inflation is running faster than wage growth," said Faucher. "So we're seeing strong wage gains because of the tight labor market, but incomes haven't kept up with inflation."
Listen to the full interview with Faucher above to learn more.
