LOCAL NEWS

Utah Economist: Inflation Spike Is Temporary 

Jul 26, 2021, 1:39 PM | Updated: 2:59 pm

SALT LAKE CITY – We’ve all felt the pain of the recent spike of inflation every time we’ve taken out our wallets. KSL-TV spoke with an economist from the U who said in order to understand what’s happening with inflation, you have to look to the pandemic and beyond. 

“Why are we seeing this impact out there in the economy and what’s the appropriate response to that particular impact which may be unlike anything we’ve seen in the last 100 years,” said Phil Dean, public finance senior fellow at the University of Utah Gardner Institute. 

Dean said he’s never seen so much attention paid to inflation in his entire career and that the pandemic skewed the typical economic factors that might affect a normal financial cycle. 

“Fundamentally, the economy is all of us, right? It’s all of us going out and making decisions and it’s very complicated, sometimes it’s oversimplified, the whole process,” he said. “I do think policymakers can influence what happens.” 

That influence came in the form of the Fed who kept interests rates low and as the government pumped stimulus and tax credit funds into the marketplace. 

Phil Dean, Public Finance Senior Fellow at the University of Utah Gardner Institute. (KSL TV)

Couple that with the pandemic, which changed our buying behavior for months, and some kinds needed to be worked out. 

Dean expressed optimism that the current price spikes are temporary, and within six to nine months, he expected some normalization, if there is such a thing. 

Two percent inflation, the amount prices go up every year, is the target for policymakers. 

It’s expected interest rates could creep up as well, which will affect the price of goods, but Dean said the pandemic impact will work itself out. 

KSL 5 TV Live

Top Stories

Local News

...
Ashley Moser

Idaho teens travel to Ukraine, gift families new homes amid war

Three Ukrainian families have new homes thanks to a group of Idaho teens who raised $50,000 for the humanitarian trip.
22 hours ago
The unfinished housing complex. 800 Block....
Mike Anderson

USU students scramble for housing after apartments drop them from lease

Some students at Utah State University are in a crunch to find housing after hundreds were dumped from their leases at a new apartment complex.
22 hours ago
The Jordan Education Foundation has set a grant to help teachers buy school supplies for their clas...
Shelby Lofton

How you can help Utah teachers buy classroom supplies

With the start of school just days away, a lot of teachers are reaching into their own wallets to buy school supplies. A foundation through the Jordan School District hopes to prevent them from having to do that.
22 hours ago
...
Ladd Egan

Workforce Services Economist: Despite recession fears, labor market ‘begging for workers’

Despite the signs of a recession and a shrinking economy, Utah's workforce still needs workers to fill a revolving job market.
22 hours ago
...
Dan Rascon

Friends save man pinned under car in West Valley City

It was a terrifying scene in West Valley City Sunday night after a reckless and speeding car flew off of Redwood Road and into a crowd of people, trapping one man underneath.
22 hours ago
...
Matt Gephardt & Sloan Schrage, KSL TV

What are the rules for airline travel credits?

After canceling a beach vacation to Hawaii, a Utah woman believes she has $1,400 in flight credits. Ongoing flight cancellations have plagued the summer travel season, and a lot of travelers are being made whole with flight credits rather than refunds.
22 hours ago

Sponsored Articles

tips how to quit smoking...

7 Tips How to Quit Smoking | Quitting Smoking Might be One of the Hardest Things You Ever Do but Here’s Where You Can Start

Quitting smoking cigarettes can be incredibly difficult. Here are 7 tips how to quit smoking to help you on your quitting journey.
Photo: Storyblocks...
Blue Stakes of Utah 811

Blue Stakes of Utah 811: 5 Reasons To Call 811 Before You Dig When Working in Your Yard

Call before you dig. Even at home, you could end up with serious injuries or broken utilities just because you didn't call Blue Stakes of Utah 811.
Days of...
Days of '47 Rodeo

TRIVIA: How well do you know your rodeo? Take this quiz before you go to the Days of ’47!

The Utah Days of ’47 Rodeo presented by Zions Bank is a one-of-a-kind Gold Medal Rodeo being held July 20-23, 25 at 7:30 PM. The Days of ’47 Rodeo How well do you know your rodeo trivia? Take the quiz to test your know-all before heading out to the Days of ’47 Rodeo at the […]
cyber security through multi factor authentication setup...
Les Olson IT

How multi factor authentication setup helps companies stay safe

Multi factor authentication (MFA) setup is an important security measure that every company should implement for their workers. It’s also wise to install it for your personal and home accounts.
...
Lighting Design

Check out these stunning lamps with stained glass shades

Lamps with stained glass shades are statement pieces that are more than simply aesthetic. They also meet a functional requirement: to light up a room.
Address Bar of internet browser shows internet access...
AARP Utah

Utah voters 50+ support increased access to Internet

The AARP surveyed Utah voters aged 50 plus about internet access and if they support the expansion of broadband, especially in rural areas currently lacking it.
Utah Economist: Inflation Spike Is Temporary