By: Gabriela Henriquez, June 22, 2021
Prices of goods are increasing and consumers are starting to notice it. The federal response due to the coronavirus health crisis caused an extra liquidity in the system and the monetary base is expanding at record levels. As a consequence, economists agree that inflation may rise up to 5.5% at the end of 2021 but are still uncertain what levels it will reach by 2022 and what policies the Federal Reserve Bank will take.
Tony Villamil, Founder and Senior Advisor of an economic consulting firm, The Washington Economics Group Inc., said businesses and people are aware that the level of prices is going up to 4% and in that sense, people are vigilant about what might happen. “It’s a wait-and-see attitude and at this stage I haven’t seen businesses rushing to change their price levels even though we are beginning to notice that in some areas,” Mr. Villamil said. He recommended few things businesses and citizens could do to protect themselves….Read full article
