Inflation has been on the minds of consumers in the US since 2007. The overall US inflation rate is at around 3.6%, with food price inflation hitting around 3.9%; this is most likely set to rise as the economy continues to have its hiccups. Minneapolis typically trends below the US inflation mark but newly released information shows just how close Minneapolis is getting to the US average or even surpassing it.
The issue that is concerning many consumers and some economists is that Minneapolis is seeing an increase in inflation which is increasing at its highest pace since 2008. The current inflation numbers have risen past the inflation numbers of 2009- the year that was dubbed “The Great Recession.” During the 2009 fiscal year Minneapolis’ inflation numbers actually moved towards negative. Some economists are not worried about the local inflation on the rise in Minneapolis; however, there is much talk about the lack of jobs being added to the market as well as the stagnation in income within the city.
Minneapolis’ Inflation Numbers
According to the Star Tribune, inflation in Minneapolis has increased around 3% for all goods overall. Gas pricing has gone up 30 percent, most likely a large contributor to Minneapolis’ food inflation of 4.6%. See more information at StartTribune.com.
What to Expect
Continued inflation can only add to a slow down in purchasing as consumers attempt to save money. This means that small businesses will continue to see their bottom lines dwindle, particularly those who concentrate on non-essential items. This likely will drive shoppers towards big box and discount stores for their needs.