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"It's really not about inflation at it's core": Local economist reacts to the Inflation Reduction Act

President Joe Biden signed the Inflation Reduction Act hoping to ease the impacts of inflation. Economists say we might not feel those improvements for months.

COLUMBIA, S.C. — Anthony McFall is a Columbia native. He says things have been getting increasingly pricey throughout the last year. He's retired but says with increasing prices, he has considered going back to work. He spoke to News19 about the impacts on his grocery bills.

"I might only have a few bags, and it's $60-70, and that's more than I’m used to paying."

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Inflation's impacts don't just hurt consumers. Uncle Willie's is a grocery store on Main Street that has been open since April. The owner, Christal Williams, says she feels inflation's impact on her perishable items.

"Normally, there’s a comparison between the cost of milk and the cost of gas. They usually rise and fall around the same time … You got a case of avocados for $99 this week and then two weeks later, you’ve got the same case of $89."

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Williams is optimistic that the Inflation Reduction Act will help the wallets of some South Carolinians, especially with medication and energy investments.

"Those are normally areas that consumers and senior citizens especially are not able to shop around for a better deal," Williams said. "I think it takes a lot of small wins sometimes to get the big win."

Some economists are less optimistic. Joseph Van Nessen is an economics professor at the University of South Carolina. He says the bill's name doesn't tell the full story.

"When we look at what's in it, it’s more of a climate bill or a healthcare bill with a variety of investments and tax credits and other activities looking towards getting healthcare costs under control, but it's really not about inflation at it's core."

Nicholas Hill is the Dean of Claflin University's School of Business and says investments into alternative fuel can set the groundwork for a better climate while helping fight high costs.

RELATED: US retail sales were flat in July as inflation takes a toll

"What it really focuses on is looking at the long term sustainability of the economy through an aspect of targeting these industries that we know have higher cost associated with or fluctuating with."

Von Nessen adds that in the Midlands, we might not see the impacts of the act for awhile.

"I think south Carolinians can be optimistic that hopefully we have turned the corner and will begin to see inflation come back down, but this is a months long process."

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