The Sconi

Inflation has been affecting all industries and 88% of Americans believe it will continue to increase during the Biden administration, with 83% concerned or very concerned about it, the Washington Examiner reported.

A study by the Federal Reserve Bank of New York estimated the next 12 months will see a median inflation rate at 4.8%, more than double what is considered as a healthy inflation rate. 

Inflation will continue to worsen if Democratic lawmakers, who have been pushing for an additional $6 trillion in spending, get their way and experts predict it will cause rising costs on necessities such as groceries and fuel, the conservative New York Post reported.

Last month inflation was 5.4%, which was the largest increase since August 2008 before the Great Recession began.

Andy Selner of Alair Homes Green Bay, and member of the Brown County Home Builders Association, told The Sconi that clients are questioning rising prices.

"From what we're seeing across the industry in the area, I would say, yes, it is the rising prices definitely are a question to a lot of clients when we see prices come in for their products," Selner said. 

Selner also pointed out there have been fewer projects and others have even been delayed. The rising cost of materials has become an obstacle to the homebuilding industry. 

"It's difficult to come to the table with prices and explain to the clients why the huge increases have occurred in the last few months," Selner said. "Year over year, yes, from what we typically would see, there is a sense of a major increase." 

Some construction projects have been abandoned altogether due to the rising costs of materials.

"We're seeing some of it, and it's not at an alarming rate right now in our business and in our industry, but as I said, there have been some projects that have been put on hold because of it," Selner said.

U.S. Rep. Bryan Steele (R-Wis.) who represents the state's First District, expressed concerns about inflation in a statement to Federal Reserve Chairman Jerome Powell. 

"Over the past year, used cars have gotten almost 30 times more expensive," Steele said. "Plane tickets have gone up 24%. Shoes are 7.1% more expensive. Coffee, sugar, cotton and propane are all up double-digits. Higher material costs have added $36,000 to the price of a new home."

Others also have questioned the higher prices. 

John Novak, a 52-year-old school maintenance worker based in Hudson, Wisconsin, told News 2, “Everything just costs more, and no one’s really making more, other than if you get government money. I did get some, but I’d rather have prices lower. It’s a tough spot. We’re kind of coming out of this COVID-19 pandemic and then when you pour too much money in you just can’t get enough of what you want.”

Data released by the National Association of Home Builders (NAHB) showed 62% of builders have increased their prices, 59% are pre-ordering materials and 20% have abandoned projects altogether due to inflation. The NAHB data also shows that 60% of U.S. households are unable to afford the median price of a house, which is currently $346,577.

The Center Square reported the price of lumber increased 300% this spring compared to the same time last year. Lumber prices reached an all-time high at the end of May, costing $1,515 per thousand board feet.

Lumber prices have since come down.

It remains to be seen if inflation will continue to rise, but some small signs, including the Manheim Used Vehicle Value Index falling during the first half of July, showed a bit of lessening. Nearly 605,000 jobs have been added monthly since Biden took office and economic growth has been tracking above 7%, News 2 reported.

Powell said on July 28, "Inflation has increased notably and will likely remain elevated in coming months before moderating." 

He noted that supply bottlenecks put upward pressure on prices as the economy reopens and spending rebounds, making the the effects larger than expected. Powell said inflation is expected to drop down toward the Fed's goals as supply problems diminish.