SAN DIEGO, Calif. (KGTV) — From gas to groceries, San Diegans continue to feel the impact of inflation here at home.
“I mean everything is just sky-high. Gas is high…people can’t get to work. It’s hard for people to get from point A to point B,” sad Tina Farr.
Inflation hit a 40-year high back in May.
“I’m hoping gas goes down…rent goes down,” said Farr.
ABC 10News asked Dan Roccato, a professor of finance at USD when relief could be in sight.
“The problem is when the supply chain is damaged as it is now, we pay the price,” Roccato explained.
He says many things are playing a part in the record inflation: supply chain and labor shortages, the Russia-Ukraine conflict overseas and the resulting high cost of energy.
“The conflict does impact us here in San Diego. Eight percent of all imported oil into this country came from Russia. Well, we’ve stopped that,” he said.
Roccato further explains the U.S. government continues to work on getting inflation under control by raising interest rates.
“That’s the main tool they use to combat inflation. It’s not going to happen overnight, it's not like flicking a switch. It’s going to take some time.”
Roccato predicts San Diegans will, unfortunately, see price increases through summer and even fall, but he says we’re nearing “peak inflation” which means lower prices are on the way.
“Eventually those interest rate increases will bite. The economy will slow down. Hopefully not go into a recession. And then we’ll see some prices moderate.”