(WKBN) – Reports have stated that inflation is the highest in almost 40 years. A typical year sees a 2% increase while December 2021 got as high as 7%.

Last year, the U.S. saw a large jump in inflation due to a recovery from the pandemic. Economists expect the rest of 2022 to slow.

“Hopefully, we’re not wrong again. But we know if it even slows from 7 percent, last year to half that, that’s still one of the most rapid years of inflation we’ve had in the past 40 years,” said Stuart Hoffman, an economist with PNC bank.

Hoffman said getting back to 2% inflation, with action from the federal government and getting short-term interest rates back 1-2% is crucial.

“Like the rates that people earn on their c-d’s or their bank accounts or their money fund accounts will go up from near zero to probably closer to two percent,” said Hoffman.

Hoffman said things like the CARES act and extending unemployment benefits were needed at the time. But now we’re starting to see the side effects of it.

He also said inflation could drop down from 7% to 3 or 3.5% come spring.

“We think that you will see it in gas prices not going up as much. We think new and used cars will come down in price, energy prices, food won’t, I don’t think food will go up as rapidly,” said Hoffman.

Hoffman also hopes to see wages go up 4-5% to get people ahead of inflation, but there is one area people could see a continued rise in prices.

“Where people who rent are going to see some pretty big increases in their rent if they haven’t already,” said Hoffman.

Hoffman said another way to get inflation back under control is the supply chain getting back to normal.