Illinois Chamber warns job cuts could follow record inflation, urges policy makers to prepare

[July 14, 2022]  By Greg Bishop | The Center Square

(The Center Square) – An economic storm is coming and the state of Illinois could do more to be better prepared. That’s the warning from the Illinois Chamber of Commerce after sustained historic inflation.

Inflation set another 40-year record Wednesday with the consumer price index up 9.1% over the past 12 months.

In May, the consumer price index for the year rose 8.8%. The June increase for the year was 9.1%. In the past month, prices on average increased by 1.3%, the highest monthly increase since December.

While fuel oil decreased 1.2% over the past month, it’s increased 98.5% over the year. All types of gasoline is up nearly 60%.

Trevor Miller operates Precision Detailing in Springfield, a custom detailing and automobile accessory and restoration shop, and has seen prices double, if not more.

“You’re talking thousands and thousands of dollars that are just going out for shipping,” Miller told The Center Square. “It used to cost me $100 to get something here from California. They told me $450 last week. Four-hundred and fifty dollars.”

Miller said the pressure is coming from all sides, from supplies to employee salaries, and he can’t eat into his profit margins too much and remain competitive.

Todd Maisch, CEO of the Illinois Chamber of Commerce, said inflation impacts everyone from business owners to consumers. And while business owners are resilient, Maisch said the signs ahead are troubling.
 

“Even the great success story for the state of Illinois, Rivian Motors, up the road in Bloomington have announced job cuts,” Maisch said. “Unfortunately you’re going to see more of those coming.”

Maisch has faith the U.S. economy is well positioned to weather the storm but urged Illinois policy makers to send a signal. Are they going to increase taxes citing a recession, “or are we going to weather the storm and show that government can be on sound fiscal footing, be conservative in our expenditures and not raise taxes at the worst possible time, that’s the question for policy makers in Illinois.”

Greg Bishop reports on Illinois government and other issues for The Center Square. Bishop has years of award-winning broadcast experience and hosts the WMAY Morning Newsfeed out of Springfield.