Could high inflation lead to a recession? A local expert weighs in

BOSTON — Shoppers at a South Shore supermarket say they are shocked at ever increasing prices every time they go back to the store.

They’re crazy absolutely Crazy.” said Susan Walsh of Braintree.

Walsh had just come out from buying groceries and said prices are up again.

“I don’t even know where to begin. I don’t know how people with families are feeding them because I just go get a few things and it’s like 50-60 bucks,” said Walsh.

And she’s not alone. “Meat is the worst. Steak tips used to be ten bucks now they’re twenty or thirty,” said Corey McElroy of Braintree.

McElroy says he’s now a more selective shopper. ”Of course everything adds up especially with gas – especially gas, food as part of the budget you’ve got to hold off on some things,” said McElroy.

A local college professor whose expertise is in business strategies and marketing thinks those higher prices may be around for a while.

“Until the prices of gasoline and those things go down people are going to have to make those trade-offs,” said Professor Peter Cohan a Strategy Lecturer at Babson College in Wellesley.

Prof. Cohan says he’s concerned that if the Fed hikes interest rates too much it could send the economy into recession.

“If that happens I think that would happen in 2024,” said Prof Cohan.

He also thinks the economy could still fix itself so the Fed won’t have to do it.

“However, if the supply chain balances out and the supply meets demand and inflation the Fed won’t have to raise interest rates so much,” said Prof Cohan.

And that he says could head off a recession and the pain people are feeling in their wallets.

In the meantime, he suggest people could do a few things to save like cut back on streaming services, price shop more often and dine out less.

Download the FREE Boston 25 News app for breaking news alerts.

Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW

©2022 Cox Media Group