North Delco News

Inflation is staring Pennsylvania residents in the eyes and hitting their bank accounts in the wake of the COVID-19 pandemic. 

Although many residents are doing what they can to pinch pennies in their budget, it isn't easy.

"My total was $170 for a small amount of groceries," Marcella Burnie, a Chester mother of four, told FOX 29. "Everything is going up: food, things you need for the house, Pampers for the baby."

Michael Ferguson, another Delaware County resident and a father of two, told FOX 29 he spent $400 on food alone, pointing out a 20% increase in breakfast items for his children.

The Congressional Budget Office released a report predicting that if the current tax and spending laws don’t change by 2031, the U.S. National Debt will reach 10% of the GDP, the highest level in U.S. history.

The report also states that the current federal debt held by the public, which was 100% of the US GDP at the end of the fiscal year 2020, is projected to reach 102% of GDP by the end of 2021.

The United States Money supply has increased by 40% since the beginning of the COVID-19 crisis. Before the period of high inflation of the 1970s, the money supply had increased by just 13%.

Former Clinton administration Treasury Secretary Lawrence Summers warned the recent economic stimulus passed by the Biden administration will likely “set off inflationary pressures of a kind we have not seen in a generation.”

Inflation is projected to rise by over 60% from its pre-COVID low of 1.4% to 2.3% or more.

According to a Shopkick survey, 83% of Americans are tightening their budget this year due to inflationary pressures, and 54% are “very worried” about inflation.

PA ranks sixth in state debt in 2021.

"The economy is recovering, and as the economy is (recovering), that’s a good thing," Personal Finance Expert with credible.com Dan Roccato said. "We’re seeing demand recover, and as demand recovers, we’re not seeing supply keep up."