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The Congressional Budget Office (CBO) says we’re likely to see high inflation sticking around until the end of the year, and maybe beyond. The non-partisan CBO says the key measures of inflation will ease a bit this year when compared to last year but will still stay relatively high.
The reason is high demand outdoing supplies.
The CBO said from the end of 2020 to the end of 2021 the consumer price index — one of the measures of inflation — grew by 6.7%. That’s the highest rise in 40 years. The CBO predicts that will drop to 4.7% by year’s end. High — in fact, far higher than anyone wants — but not as high as it has been.
The report also says price increases will be twice what the Federal Reserve is trying to engineer. That target is 2%. The CBO says we won’t see prices that rising that slowly until at least 2024.
As an example, the CBO pointed to prices in December of last year. They rose 7% compared to 2020.
Source link: The Washington Post — https://wapo.st/3N8dCor |
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