ST. PETERSBURG, Fla. — According to the Bureau of Labor Statistics, inflation rose to 3 percent in January. That’s up slightly from 2.9 percent in December.
This is much higher than the three and a half year low of 2.4% seen in September.
What You Need To Know
- Inflation in the United States rose to 3% for January
- It continues a two-month increase from December
- Inflation and tariffs could push prices higher and could hurt consumer spending, affecting Bay area businesses
David Curuso runs Dalmoros Fresh Pasta in St. Petersburg. He managed to weather the inflation caused by the global pandemic by finding ways to save.
“I’d say over the past couple of years, profit margins have gone down, you are getting squeezed, even your employees. They want to ask for a couple more dollars because it’s hard for them to live their life,” Curuso said.
Inflation was easing over the last couple of years until the latest January numbers.
Professor Michael Snipes, who teaches economics at USF, says with a mix of rising inflation and tariffs, consumers could see much higher prices in the future.
“When we look into the future, that’s also going to play into consumers’ minds. ‘Well, I thought the economy is getting better but now prices are going back up, are things getting worse,’ Then they might start to cut back on consumption and increase savings. That might slow the economy down,” Snipes said.
