According to the Bureau of Labor Statistics, the 2021 inflation rate hit the highest level seen since the 1980s.

UTRGV Economics Professor Dr. Andre Mollick says that while the 7% inflation rate may not have hit the price of day-to-day goods, it did impact major purchases like homes, cars, and rent payments.

RELATED: US inflation soared 7% in past year, the most since 1982  

"Used cars were moving prices too much, and we also had an upward pressure in home prices, which felt too much activity because of when the pandemic eased a little bit last year," Mollick said. 

Mollick says the pandemic caused the recession in 2020, but when the economy picked back up in 2021, buying came with it. He says the demand for scarce goods raised the prices of some items more than others. 

Watch the video above for the full story.