SEMO professor David Yaskewich gives inflation outlook for 2023

CAPE GIRARDEAU, Mo. (KBSI) – At the beginning of 2022, the 12-month rate of inflation in the United States was 7.5 percent, the highest it had been in 40 years. 

This number reached as high as 9.1 percent in June but has gradually made its way to 7.1 percent. 

Southeast Missouri State professor David Yaskewich said some inflation is necessary for a strong economy. 

“If we have consumer incomes rising and employment rising and people could afford more goods and services, inflation is not necessarily a bad thing, it just depends on what level,” he said.

Yaskewich said there are a number of factors to indicate we will likely see the rate of inflation continue this downward trend. 

“We’ve seen the seven consecutive increases in interest rates by the Federal Reserve,” he said. “We’ve seen two consecutive years of high inflation where consumers are more price sensitive, and we’ve seen declines in personal savings, which would simply affect how much people are willing to simply pay more for some items.” 

Yaskewich said the long-term goal of the Federal Reserve is to bring the inflation rate down to 2 percent, and while that number is not realistic for 2023, Yaskewich anticipates a number lower than what it is now. 

“The hope is that in 2023, we see a return to price stability, which would be where the rate of inflation is positive but at a low value and is somewhat predictable as to what you’ll see in the future,” he said.