The Independent Fiscal Office provided the report “Inflation’s Impact on the Pennsylvania Economy, Budget, and Pensions” as part of a legislative testimony. While energy prices are a clear driver of inflation at 33% over the prior year, durable goods (including vehicles, appliances, and furniture) were up 14%, and grocery prices are now up 13%. Meanwhile, the real value of average hourly earnings for Pennsylvania payroll workers contracted by 3.8% in April 2022 relative to the prior year.
The report also examines the impact of increased revenues on the state’s General Fund, while forecasting that the current increases cannot be maintained in the 2022-23 fiscal year. Click here for more.