(WSIL) -- If prices seem to keep getting higher you're right. Inflation has hit a 39-year high.
The Bureau of Labor Statistics says as of December, inflation is at seven percent. That's a faster increase than November 6.8%.
It's also higher than economists predicted. The Federal Reserve plans multiple interest rate hikes this year to fight inflation.
The first one could be as early as March.
The Biden Administration says inflation could go down if employment goes up.
"Even with fed rate hikes penciled in, the unemployment rate will continue to decline this year, and we should be back to full employment by the end of the year." said,聽Jared Bernstein, White House Council of Economic Advisers.聽
News 3 talked to SIU Economics professor, Kevin Sylwester about inflation.
Sylwester says people in 九游体育 Illinois will see similar effects to the rest of the U.S.
But, he says wages will play a role in the impacts of those rate hikes.
"If you're someone on a fixed income and you're going to the grocery store, and you're seeing prices rise considerably, more so than they have in the past, this is taking a much bigger bite out of your paycheck. Now, we have seen healthy increases in wages. When people's wages are going up at similar rates to the inflation rate, their overall purchasing power is remaining constant." said Sylwester.聽
The Federal Reserve is also set to end its monthly bond purchases. Those helped the economy during the pandemic.