(The Center Square) — As consumer prices continue to rise at the highest rate in decades, a Georgia nonprofit is warning about how it will impact some residents.
“Unsurprising for anyone who paid attention to prices last month, energy prices rose 32% over the last 12 months and food prices rose 8.8%. This is bad for everyone but worse for low-income and impoverished Americans,” Erik Randolph, director of research for the Georgia Center for Opportunity (GCO), said in a release.
“The U.S. inflation rate reflects not only energy and food price increases, but it is also spreading to more and more industries as businesses are forced to raise prices,” Randolph added. “Also concerning are disturbing signs pointing to a possible economic slowdown, giving credence to those who have been predicting stagflation will return.”
Gas prices in Georgia continue to drop, and Monday’s state average of $3.76 per gallon for regular unleaded gasoline was 11 cents lower than a week ago and 50 cents less than last month. However, it remains $1.05 more per gallon than last year, and according to AAA, motorists will pay $56.40 to fill a 15-gallon tank with regular gasoline.
“Georgians are feeling less pain at the pump than in mid-March when prices were record high — over 4 dollars a gallon,” Montrae Waiters, a spokeswoman for AAA, said in a news release. “Although supply and demand factors typically support elevated pump prices, the fluctuating price of oil continues to be the main factor influencing prices at the pumps.”
Meanwhile, small businesses aren’t faring much better. The Small Business Optimism Index from the National Federation of Independent Business (NFIB) revealed that inflation has overtaken labor quality as the top business problem for small businesses. State-specific data isn’t available, but the organization said that while the Peach State has generally performed better than many states, Georgians cannot escape national factors.
“Georgia fared better than a lot of states during the pandemic thanks to strong leadership, but things like inflation, supply chain disruptions, and a spike in fuel prices are affecting small businesses everywhere,” NFIB State Director Nathan Humphrey said in a release.
Georgia Gov. Brian Kemp, a Republican, has pointed to the state’s response to the pandemic for its positive economic position. But inflation at the national level is wreaking further havoc on the economy.
“This crisis may have been initiated by the pandemic, but it was exacerbated when state governments shut down their economies and the federal government pumped unprecedented levels of money into the system to sustain aggregate demand,” Randolph said.
“We’re paying for that now,” Randolph added. “The only way out of this mess is to refocus on supply-side policies at both the federal and state levels to encourage investments, risk taking, and production. It also requires fiscal restraint in the halls of Congress to reign in deficit spending.”
By T.A. DeFeo | The Center Square contributor
