TAMPA, Fla. - The economy is bouncing back quickly now that more people are getting vaccinated and returning to normalcy. But a quick economic boom could have some ramifications.
You may have noticed Florida’s booming economy – even on your daily commute.
"That's why you see more traffic on Dale Mabry, that's why you see more traffic on [Interstate] 275, and in my opinion, it's going to get worse before it gets better because we have so many people moving into our area. That's the good and the bad," explained Greg Ghodsi, the director of investments at Raymond James Financial.
People from around the country are moving to the Sunshine State. Economy and finance experts say that's great for the economy as the nation rebounds from the pandemic, but it can be a double-edged sword.
"A lot of clients, they ask why have things gone up so much, and the reason is because of what the federal reserve has done a year ago and also what DC has done in terms of stimulus and checks that have gone out to individuals," Ghodsi said.
He said the stimulus checks were great in helping people stay on their feet and keeping the economy going. But he says the amount of cash in the system has increased significantly over the past year.
With production and manufacturing still slow, there’s a supply and demand issue, pushing up prices over time.
"We're in this process right now, I think it's going to take the next few quarters to really get some equilibrium in terms of what the prices are going to be."
Ghodsi says we won't know how impactful inflation is going to be until the whole world opens back up.
Companies like Coca-Cola, General Mills, and Procter and Gamble are telling customers to prepare for more price increases throughout this year and into 2022.
The overall cost of consumer goods increased by 0.6% in March, the largest amount in almost a decade. This comes as inflation rates rose by almost three percent throughout 2020.