WISCONSIN, (WAOW)-- More than gas prices are on the rise. Due to the COVID-19 pandemic there is a 5% inflation in many markets.
As the pandemic settles down, we can expect inflation to do the same, but we may have to ride it out for a few more months.
"You have this pent up demand for travel, leisure, other products as well, but you also have some supply chain issues and the combination, that's caused inflation to go up by about five percent at an annualized basis," UWSP Center for Business and Economic Insight Chief Analyst Kevin Bahr said.
And it isn't just the United States, experts say the entire world is experiencing the price spike, just like at the beginning of the pandemic.
"We're kind of just starting to get back to the way we were. But the thing is everything had dropped so much and now everything is coming back so quick not only in the United States but globally you get this kick up in prices," Bahr said.
The main question, he says, is whether or not this price spike will last.
"Is this a one time pop in prices or is the rate change in prices expected to continue after this year?" Bahr asked.
The answer? Consumers shouldn't be worried.
"There's a variety of measures that says this is a one time pop in prices with the rate of price change not expected to continue at the current rate following this year," Bahr said.
An area resident said that though the spike is unpleasant, she understands why businesses are having to raise rates.
"Kind of frustrating, but I also understand what they're trying to do with after what happened with the pandemic and everything closing down," Wausau resident Natalia Sutherland said.
Bahr said he expects the prices to level off soon and that people should see the rising costs as an encouraging sign, rather than something to fear.
"Take the fear out of it. I think a lot of time fear comes from what is unexpected but this is, I really don't think, all that expected. The price increases, yeah they're bad, but in a way you know it means that things are coming back and getting back to normal," Bahr said.
He said he expects prices to be back down by early 2022.