Arkhat Zhumadilov recently discussed the 2022 rise in inflation

Spring, Texas Inflation rates in the United States recently hit their highest levels in 40 years. Arkhat Zhumadilov recently discussed why this inflation occurs and what consumers should expect.

"Prices on everyday items rose nearly 9 percent compared to last year," Zhumadilov said. "Prices are rising at a rate is reminiscent of inflation in the 1980s."

Arkhat Zhumadilov

Why Is Inflation Occurring?

Arkhat Zhumadilov explained that this rapid inflation is occurring due to the COVID-19 pandemic, which disrupted supply chains around the globe. This disruption created a demand increase that could not be met during the pandemic. However, as the pandemic subsides, inflation is expected to stay high.

Zhumadilov added that inflation was low for many years, but the economy reopening quickly, and high energy prices are also causing prices to rise. Oil, electricity, and gas are now more expensive around the globe, increasing the cost of moving goods from one location to another, and in turn, increasing the cost of the goods themselves.

He explained that lifting restrictions on entering stores and restaurants has led to consumers spending more money. Many businesses now believe they can raise prices without losing their customers. The higher prices aren't as much of a bother to people who couldn't go out and spend money during the heart of the pandemic.

Is Inflation Here to Stay?

Arkhat Zhumadilov explained that consumers should be prepared for this inflation to stick around. The Bureau of Labor and Statistics stated that high inflation rates are due to increases in the price of shelter, food, and gasoline. Energy prices will continue rising, which will continue to increase inflation.

Zhumadilov stated that the Russian invasion of Ukraine caused a quick and substantial surge in oil prices. Gas is now at all-time highs, and the price of gas will continue to affect the cost of other goods.

"Financial experts don't know how long this inflation will last, but they see it sticking around for months to come," Zhumadilov said.

In the past 12 months, shelter costs rose 5 percent, overall food costs rose nearly 9 percent, and grocery prices rose 10 percent. These are increases that affect all Americans.

Financial Advisor Arkhat Zhumadilov

Zhumadilov of The Woodlands, Texas in Montgomery County is a financial advisor with decades of experience in the industry. He stated that history has proven inflation will subside, and he anticipates energy prices to decrease within the year. Lower energy prices will result in lower prices for food and other items. The COVID-19 pandemic was unprecedented, and the following invasion of Ukraine resulted in even more unique financial circumstances. He stated that Americans may not see a decrease in prices in the coming months, but they can expect a return to "normal" within roughly a year or two.

read more: Roy Y. Gagaza


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