On Thursday’s broadcast of MSNBC’s “The Last Word,” NBC News Senior Business Correspondent Christine Romans discussed negative views on the economy and pointed out that over the past two years, the inflation level is 10% and that shelter costs that people can’t easily change their behavior to avoid have been “a real big part of the problem.”
Romans stated, “I think those inflation scars are really, really deep, and it will take a lot of time to heal those wounds. And I think that’s what the treasury secretary was sort of suggesting, that, over time, people are going to realize that the worst of the inflation is behind us and that things are getting better. That inflation situation was pretty scary coming out of the pandemic. I also think that…we talk about inflation rates, but Americans talk about price levels. And so, a 3.1% inflation rate…is on top of the 7% inflation in November last year. That’s 10% if you add those two together, right? Just for back-of-the-envelope math. So, people are still paying more for their grocery bill today than they were two or three years ago, and they know that.”
She added, “I do know that a big chunk of inflation is shelter costs. It’s the cost of housing, and that’s been really, really tough to turn the curve on. And Janet Yellen, the Treasury Secretary, yesterday, said, they think that those are going to start to come down, the shelter costs will start to come down next year. The Fed chief said the same thing. It takes a long time to turn sort of that chart. And they’re hoping that that — but shelter’s been a real big part of the problem. And Ali, you can switch which cuts of meat you buy at the grocery store if you’re trying to manage inflation in your grocery bill. You can’t change where you live overnight. And so, that’s why that part of the inflation story has been really troubling.”
Romans also stated that difficulty finding child care is a reason for dissatisfaction with the economy and that all the predictions about a recession in 2023 might be another factor.
Follow Ian Hanchett on Twitter @IanHanchett