Consumers, including those in Georgia, are likely facing a prolonged period of inflation, in part because of the federal government pumping large amounts of money into the economy, according to one policy expert.

Prices of goods and services will continue to rise, said Chris Denson, director of policy and research at the Georgia Public Policy Foundation.

"With help wanted signs on seemingly every block combined with a shortage of materials across the supply chain, consumers are likely facing a prolonged period of inflation," Denson said.

Despite fears of a shortfall, the state reported a budget surplus of approximately $3 billion at the end of the fiscal year to June 30. This will mean an extra $1 billion for Georgia’s rainy day fund.

"That will help insulate Georgians when it comes to a reduction in state services such as education and public safety, or prevent a raise in taxes necessary for lawmakers to balance the budget," Denson said. "However, Georgians will still experience the ramifications of broader economic concerns such as rising prices for gasoline and groceries." 

The most recent federal relief legislation did have protections to ensure the money could not be used in certain ways, Denson said.

"Federal relief money could not be used to offset underfunded pension plans, for example, for states with poor fiscal management. With the news this week that the COVID-19 recession only lasted for two months, using the pandemic to fund policy priorities unrelated to the pandemic is not only contributing to the national debt but fueling many economists' inflationary concerns," Denson said.

According to a Shopkick survey, reported by Forbes, 83% of Americans are cutting spending this year due to potential inflation, while more than half are “very worried” about inflation.

Former Clinton administration Treasury Secretary Lawrence Summers has warned the recent economic stimulus passed by the Biden administration will likely “set off inflationary pressures of a kind we have not seen in a generation."