New Federal Reserve report: Inflation is going down in the Midwest

FARGO, N.D. (KVRR) — The Federal Reserve Bank of Minneapolis released a new report, saying that inflation is going down in the Midwest but families are still feeling financial tension from the high prices over the past two years.

The Federal Reserve Bank of Minneapolis recently released data on a report that suggests households are still feeling financial stress despite inflation declining.

The survey asked workers questions regarding prices, and majority of them said food and other basics keep eating into their income.

Erick Garcia Luna, Regional Outreach Director, says, “They are feeling like prices are very high and that is because they’ve been experiencing very high prices for the last two years so any little increase is going to feel very heavy on some peoples’ budgets.”

But it’s not just people feeling the squeeze.

Businesses are also seeing the impacts.

According to the Fargo-Moorhead-West Fargo Chamber of Commerce, Minnesota’s Paid Family Leave Bill paired with inflation will hamper businesses in Moorhead.

Cale Dunwoody, FMWF Chamber Director of Public Policy, says, “Making sure that our businesses are staying afloat especially during inflation. That coupled with inflation it’s just significant and really hinders our businesses to be able to grow and expand and attract more workers.”

Some people are still waiting for prices to drop, while others have made wholesale changes to their budgets.

While it has been a difficult two years for residents and businesses, the Chamber of Commerce says the area is strong to weather the storm.

And there is a plethora of resources available out there.

Shannon Full, FMWF Chamber President & CEO, says, “We are a very resilient community. There are a lot of nonprofits and a lot of people that are coming together to help make sure that those that are really being impacted the most have the services and the resources that they need.”

While many are celebrating the decline of inflation there are some that are still feeling that squeeze as we still have a long road ahead of us.

Click here to learn more about the Federal Reserve Bank of Minneapolis.