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YOUNGSTOWN, Ohio (WKBN) – U.S. inflation came in at 2.1 percent in January — higher than the percentage this time last year.
According to experts, this is a sign of strength in our economy.
More people are back to work and making more money.
Karen Segesto, a senior advisor with PNC says a lot of clients have been concerned about volatility this year in the market.
This is something they were prepared for because the overall basic fundamentals of the economy right now are strong.
“Corporate tax cuts — the rates are less for corporations. Unemployment is at an all-time low so we see the fundamentals are strong,” says Segesto.
Following the Great Recession several years ago, unemployment is falling.
This is part of the reason why major stock indexes tumbled early this month and then recovered.
With changes in interest and inflation, workers at PNC say now is a good time to take a look at your overall investment plan.
Segesto says this is a great time to get a financial checkup with your bank.
“Look at the quality of your equities and your holdings and is it time to allocate?”
Higher inflation and interest rates would increase the costs things like car loans and credit card debt.
Some prices on certain produce and gas have already risen.
The Federal Reserve will meet to discuss all of this next month.
WKBN asked a bystander for her thoughts on this issue.
“I think inflation always has to be a concern. If prices go up but the wages can’t compensate the difference — it’s a situation.”