Trifecta of economic factors driving U.S. inflation, expert says

Inflation pressures

Rising prices for food, gasoline, and home heating oil are hitting consumers who are already trying to bounce back after the height of the COVID-19 pandemic.

COMMACK, N.Y. - Pressure on the U.S. economy is coming from three different directions, according to economist Dr. Martin Cantor, who said this was bound to happen regardless of Russia's invasion of Ukraine.

"There are three components to inflation," he said "The first is the supply chain, the second is the price of oil and the third is that there's too [many] dollars in the economy."

The result is rising prices for food, gas, and home heating oil among what is threatening consumers and their wallets as so many try to bounce back after the height of the COVID-19 pandemic.

For people like Jeff Rosen — whether it's filling up at the pump or buying groceries — the increased cost of living is hard to miss.

"Maybe you don't go on as many vacations, to dinner as much or at all," he said. "The price has gone up on everything except salaries."

Gas prices hit cab drivers

Rising gas prices are affecting anyone who drives for a living, especially drivers of taxis and for-hire vehicles.

Experts are predicting inflation will hit 9% in the next few months and improvement depends on how long it takes for the Federal Reserve interest rate policy to be effective. Changes also won't be seen until the price of oil comes down, the supply chain cleans up.

"If we don't fix it the only change we'll see is it'll get worse because there will be a recession — if we're able to, we won't get out for at least another nine to 10 months," Cantor said.

People are taking advice from the experts to spend less.