SAN FRANCISCO, Calif. (KRON) – If you thought it was expensive to live in the Bay Area, it’s gotten worse. 

Consumer prices in June were up over 3% compared to the same time in June.

Over the last two months, the cost of meat poultry fish and eggs has jumped 6.1 percent, gas prices are up 7.4 percent, and used cars and trucks soared 17.6 percent from April to June. 

“If you are looking for this high inflation rate to go away in the next month or two, you will be disappointed,” Gary Schlossberg, global macro strategist with the Wells Fargo Investment Institute, said.

Financial experts say we’re seeing these higher prices for several reasons. 

First, government stimulus checks and enhanced unemployment benefits to help families and individuals get through the pandemic have put more money in people’s pockets. 

“When you have more money in circulation people feel like they can buy more things, but we are competing for the same amount of good, steak or caviar, therefore we will bid those prices up and prices will rise,” Colleen Haight, San Jose State economics professor, said.

More money in people’s pockets, coupled with the reopening has led to increased demand but the supply hasn’t kept pace, also leading to higher prices.

“We think the distortions and dislocations from a strong rebound will continue to put pressure on the labor market and on supply inventory and availability of good and that will keep inflation elevated probably into next year, but we think inflation will wind down over the course of 2022,” Schlossberg said.

Even if the demand is tempered and supply catches up, some economists believe the government must wind down its spending to curb these higher prices. 

“If inflation is allowed to keep going and rising, we will be in for some trouble because inflation eats away at people’s savings,” Haight said.

One way to curb inflation is through the raising of interest rates but at this point, the Fed has indicated that they have no plans to do that.