Fed Economist Finds 3.7% Inflation Fuels Southwest Minnesota Business Nervousness
Updated
Updated · marshallindependent.com · Aug 11
Fed Economist Finds 3.7% Inflation Fuels Southwest Minnesota Business Nervousness
1 articles · Updated · marshallindependent.com · Aug 11
Summary
Southwest Minnesota businesses told Minneapolis Fed economist Erick Garcia Luna they feel both positive and uneasy, with labor shortages and inflation driving much of the concern.
3.7% inflation remains well above the Federal Reserve’s 2% goal, and Garcia Luna said many participants reported higher prices are directly squeezing their finances.
Labor supply emerged as a main obstacle as retirements outpace new workers entering the labor force; Garcia Luna said immigration also affects that shortage.
Energy costs have added to the strain, with Garcia Luna saying the Iran war has repeatedly jolted volatile prices, while goods inflation has stayed elevated in the post-COVID period.
Agriculture gives the regional economy outsized importance, and Garcia Luna said farmers across southwest Minnesota have been among those suffering most from current pressures.