The price of essential goods and services has been trending upward nationally, and that trend has made its way to Texas.
Additionally, Brad Johnson of The Texan observed that the Houston metro experienced a 6.1% CPI increase from October 2020 to October 2021.
Since October, the residential price of electricity in Texas increased by .71 cents per kilowatt-hour (kWh) over 2020.
The price of a dozen eggs has increased by 18 cents, and the cost of a loaf of bread has increased 21 cents over the last year.
America’s official inflation rate for 2021 is slightly below 7%.
Several economic experts argue that America’s surging inflation is the product of fiscal and monetary policies.
“There will be higher prices in specific locations or particular goods and services based on underlying supply and demand, such as people flocking to Texas from other states for opportunities to flourish,” Vance Ginn, chief economist with the Texas Public Policy Foundation, told The Texan.
“But ultimately, inflation is always and everywhere a monetary problem,” he said, alluding to the role the Federal Reserve plays during inflationary episodes.
Ginn believes Congress’ increased COVID-19-related spending is one of the principal culprits behind the rising inflation, summarizing the situation as “too much money chasing too few goods.” This heightened spending took place during the previous Trump administration and under the current Biden administration.
The economist blamed the combination of a loose monetary policy coupled with supply chain issues as the main reasons for the current nationwide inflation.
Ginn concluded, “Inflation is hitting Texans where it hurts: their wallet.”