Experts worry about rising inflation as Seattle gas climbs above $5 per gallon

Jun 8, 2022, 12:27 PM | Updated: 3:11 pm

Follow @http://twitter.com/Mynorthwest...

With inflation affecting the rising costs of important commodities like food and gasoline, many Americans are left with higher and higher monthly bills on necessities for their daily lives.

As inflation gets up to 9.2% this month according to the Organization For Economic Cooperation and Development, essential goods take a bigger and bigger chunk of the average American’s budget. This along with recovering unemployment numbers has some worried about stagflation, or when economic productivity is below expected levels and inflation and unemployment keep increasing.

“The world economy is again in danger,” The World Bank warned, according to The Associated Press. “This time, it is facing high inflation and slow growth at the same time … It’s a phenomenon — stagflation — that the world has not seen since the 1970s.”

Ross: A brief history of presidential efforts to fight inflation

Matthew Gardner, the Chief Economist for Windermere Real Estate and a member of the Washington State Governors Council of Economic Advisors, weighed in on the issue on Seattle’s Morning News Wednesday.

In reference to the rising gas prices, Gardner explained that the ongoing Russian Invasion, as well as the Organization of the Petroleum Exporting Countries (OPEC), produce less crude oil as they continue to try and meet pre-pandemic levels.

“Well, we know what’s going on in Ukraine, because OPEC, with all these things, coming in and is pushing up gas prices very, very significantly,” Gardner said.

With Seattle metro area gas prices above $5 a gallon for the first time, this price hike is making the above-average inflation especially difficult for commuters in the city.

Part of the reason for the rampant inflation is the continued supply chain issues that are affecting most industries, but especially food prices, which have increased more than 7% over last year. Another major factor according to Gardner is union participation, which has fallen dramatically since its peak after the Second World War.

“But what’s different today, or back then a lot of it was purely a function of union participation. One in three workers in America was a union worker. Today, it’s only at 10%. So you don’t have that collective bargaining ability or fewer people have it.”

While it is unlikely that this will cause a full-on recession though, Gardner says, and instead is expecting prices to return to normal as unemployment goes back down, that does not eliminate the possibility. Due to the history of the Federal Reserve handling similar situations, current issues don’t appear to go away without some major effects on the American economy.

“(The Federal Reserve) has a job that is to create full employment and stable inflation. However, every time they’ve tried to achieve that they’ve always overshot it and so soft landings, they’ve been pretty lousy achieving. So hopefully, they’ll do better this time around. There is still the potential for recession certainly though.”



Local News

cliff coast guard port Angeles...

L.B. Gilbert

Coast Guard rescue man in distress after he runs off cliff near Port Angeles

The U.S. Coast Guard rescued a man who fell off a cliff in Elwha, just west of Port Angeles.

8 hours ago

(Photo from KIRO 7)...

Deborah Horne, KIRO 7 News

New state law could speed up construction of Washington ferries

It was a rocky start to the summer travel season for hundreds of passengers.

8 hours ago

OpenAI's CEO Sam Altman, the founder of ChatGPT and creator of OpenAI speaks at University College ...

Associated Press

Artificial intelligence threatens extinction, experts say in new warning

Scientists and tech industry leaders issued a new warning Tuesday about the perils that artificial intelligence poses to humankind.

8 hours ago

Amazon walkout...

Bill Kaczaraba

Seattle Amazon workers planning noon walkout Wednesday

Some Amazon workers at Seattle headquarters announced internally their plans to walkout next Wednesday, according to reports.

1 day ago

hurricane ridge day lodge...

Frank Sumrall

Hurricane Ridge closed indefinitely following Day Lodge fire

Olympic National Park’s Hurricane Ridge will be closed indefinitely after a fire in early May destroyed the Day Lodge.

1 day ago

Stranger Things Seattle...

Micki Gamez

Seattle ‘Stranger Things the Experience’ brings Netflix series to life

If you are a fan of the Netflix series Stranger Things, then you have to check out 'Stranger Things the Experience' in Seattle.

1 day ago

Sponsored Articles

Internet Washington...

Major Internet Upgrade and Expansion Planned This Year in Washington State

Comcast is investing $280 million this year to offer multi-gigabit Internet speeds to more than four million locations.

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.

Comcast Ready for Business Fund...

Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Experts worry about rising inflation as Seattle gas climbs above $5 per gallon