CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Our Chief Economic Analyst and Professor of Economics at the University of Virginia, Dr. Ed Burton weighed in on the latest inflation numbers. “The average price, if you look at the CPI is 30% higher than it was if you go back to January, February, March of 2020,” he stated, clarifying that the average price increase has been more significant than commonly reported. This sharp rise in costs means that what $100 could buy four years ago now requires $130.

Dr. Burton explained that inflation’s impact is felt universally but mostly affects lower-income individuals who do not have significant assets to cushion the blow. “Inflation is a tax,” he emphasized, highlighting how it particularly penalizes those living paycheck to paycheck.

When asked about the root causes of this inflation, Dr. Burton pointed to a massive increase in the money supply. “The correct money supply number is 7 trillion,” he corrected, noting that from January 2020 to today, the money supply surged from 14.5 trillion to over 20 trillion.

Discussing potential solutions, Dr. Burton suggested that increasing competition could help mitigate inflationary pressures. “One of the best ways to get rid of monopoly practices is to get rid of regulations,” he advised, advocating for a freer market to drive down prices.

Dr. Burton also discussed Juneteenth, noting its origins in Texas, his home state. Listen here for the full podcast: