Consumer prices leap 4.2% in April, the fastest increase in 13 years but Texas economist Doctor Ray Perryman says, "I really don't think there's much to worry about."
Although he says we should keep an eye on it. Doctor Perryman says there's several things to keep in mind. "First of all, when you talk about inflation year-over-year, you're comparing us to the low point of the pandemic when you had oil prices in the teens compared to over $60 dollars a barrel now."
Perryman continues: "A big component of the April increase is higher gasoline prices and the ongoing chip shortage which has led to a shortage in new automobiles and higher prices for used automobiles."
Doctor Perryman says the Federal Reserve is monitoring the situation and "is ready to step in if necessary and take any steps it deems appropriate."
As for the future? Perryman adds "I think we'll probably see inflation a little bit higher over the next few years, but nowhere any type of alarming levels that would threaten the economy like we saw in the late 1970's and '80's."