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Economist says high inflation rates will be short term problem
Dr. Michael Greiner, an economist at Oakland University, says that the soaring inflation rates will be a short term problem, when considering the long term.
DETROIT (FOX 2) - Inflation jumped 7.5% year-over-year, hitting its highest rate in four decades.
The price increases are something most people are feeling.
Related: Democrats propose temporary suspension of federal gas tax to offset soaring prices
"A lot of our residual cash, we have to go into it. Now, our emergency banks and take care of our people," said Venecia Brown of Elisa Angel Services.
The organization services group home that help people with physical and mental disabilities, as well as people who have fallen on hard times. Right now, the price of food, such as bread, is hurting Elisa Angel Services.
However, Dr. Michael Greiner, an economist at Oakland University, says he is a bit optimistic.
"I certainly can relate to how people are feeling. I am somewhat optimistic though. While we’re seeing a jump the amount of the jump is actually decreasing," he said. "Over the long-term this is really going to be a short term problem."
He said the bigger issue in the short term is the health of the economy as a result of the pandemic.
"We have heard from in the fed that in the next year they expect probaby four rate increases, which will essentially be, I guess how a lot of people have characterized it, is basically tapping the brakes on the economy, which is kind of what the fed can do," he said. "When you look at the national debt as a percentage of GDP, and the way interest rates are now overall, the national debt is actually growing at a slower rate than the economy is. So, we really, most economists are not terribly worried about the national debt as a factor right now."