HUNTSVILLE, Ala. — Prices have gone up for just about everything, everywhere!
So far the national average reports a 6.2% increase in inflation. However, we keep hearing the word inflation, but what does it mean and how does it affect us in the Tennessee Valley?
Keneisha Deas has a look with this Verify segment.
With low supply and high demand for just about everything, the pandemic pushed prices for things like groceries and rent to go up!
Is North Alabama’s inflation higher than the national average?
Dr. Qian Ruby Shen
MBA Program Director for the College of Business & Public Affairs
Alabama A & M University
So we can verify that no, the average inflation rate for North Alabama is not higher than the national average.
Although numbers have not been released yet, economics experts say the cost of living is lower here in the Tennessee Valley.
WHAT WE FOUND:
First, let’s define exactly what is inflation?
“Inflation is a general price increase. Overall basket of goods and services. So this basket can include the cost of housing, transportation, food and beverages, healthcare services, and of course other items,” said Shen.
Here’s a look at some of the industries Shen said are impacted here in North Alabama.
“The housing prices, we’re talking about another home purchase is 20% percent.”
“The rental is probably that high, about a 5 or 6 percent increase.”
“Food at least in general, everything together in general, I would assume the food inflation is probably 10%.”
Dr. Shen said this inflation will impact some people more than others.
“In general speaking, those lower-income people who are getting paycheck to paycheck. A larger portion of spending is on food and housing. So, those people are probably will see get more impact of this inflation.”
However, is North Alabama’s inflation higher than the national average?
“Our cost of living in North Alabama is still low, which is good. Which is why we’re attracting a lot more people coming to this area.”