Inflation continues to soar

More from this show

Inflation is up, GDP is down, and there’s increasing speculation that a recession could be brewing. That’s a lot to be concerned about, but how concerned should we be? We asked ASU economist Dennis Hoffman.

How much is inflation affecting our economy?

“It manifests itself in a number of different ways…I mean try mortgage rates…we’ve got expensive groceries, we’ve got expensive everything and that’s hitting especially low-income people really, really hard. But now, we’ve got ‘stag-flation’,” Hoffman said.

Well, what is stagflation?

“This was the evil word of the ’70’s, this is when you have slow or no growth…’stagnation… accompanied by inflation.”

This year, consumption and investment were really strong according to Hoffman but “we got killed by net-exports and so it usually is a pretty small piece of the puzzle but this time it turned out to be big, we continued to import a lot but our exports fell off the table.”

This was due in part because of the inability to export to Asia because they were locked down, we couldn’t export to Europe because of the Russian deal and our imports continued said Hoffman.

Phoenix has seen a 10.9 % inflation rate from a recent report, which is the highest of any metropolitan area in the country.

“CPI is dominated by the cost of shelter. [In Phoenix] we have the highest housing price inflation in the nation. Housing prices went up faster in Phoenix than anywhere else, that translated immediately into higher rents, higher housing prices, that goes into shelter and that hits us,” Hoffman said.

He added that we kept our economy open more than other places did.

Dennis Hoffman, ASU economist

Illustration of columns of a capitol building with text reading: Arizona PBS AZ Votes 2024

Arizona PBS presents candidate debates

Earth Day Challenge graphic with the Arizona PBS logo and an illustration of the earth

Help us meet the Earth Day Challenge!

Graphic for the AZPBS kids LEARN! Writing Contest with a child sitting in a chair writing on a table and text reading: The Ultimate Field Trip
May 12

Submit your entry for the 2024 Writing Contest

The Capital building with text reading: Circle on Circle: Robert Lowell's D.C.
May 2

An evening with ‘Poetry in America’

Subscribe to Arizona PBS Newsletters

STAY in touch
with azpbs.org!

Subscribe to Arizona PBS Newsletters: