Inflation and the Labor Shortage

Increases in consumer pricing comes as no surprise for most HOA boards and managers. All service providers and contractors are being squeezed between gas costs, labor costs and material cost increases.  There are fears that this inflation may not be transitory.  Yes, 5% appears high for transitory inflation;  but the Federal Reserve thinks that this will moderate (read more here). Back in the 1970’s and 80’s we also experienced serious inflation due to the oil crisis. But, spending then was nothing like it is today where trillions of dollars are beginning to wash through our economy.  Prior to Covid, we had been adjusting to the annual State of California Minimum Wage increase to $15 per hour and thought that was bad.  But, today’s inflation is caused by the printing of trillions of dollars and the prospect of more trillions in the next few years. The Federal Reserve insists that this is just transitory inflation.  Let us hope they are correct.  If not, HOA boards need to prepare their 2022 budgets for inflation and economic turmoil.