Hopefully, prices won’t increase but it sounds like we won’t see a decrease at the store and gas station anytime soon.
Transitory, y’all! Inflation is transitory.
Inflation is so transitory that the Congressional Budget Office (CBO) said it will continue into 2023.
The nonpartisan budget office estimated that key measures of inflation will show signs of easing this year relative to last year, but will remain uncomfortably high as demand continues to outstrip supply, putting upward pressure on prices.
From the end of 2020 to the end of 2021, the consumer price index — one measure of inflation — grew by roughly 6.7 percent, the highest level in roughly four decades. The pace of that increase will come down, according to the CBO, but only to 4.7 percent — still far higher than policymakers want. Other measures of inflation cited by the budget office project that price hikes will remain roughly twice the Federal Reserve’s intended target of 2 percent. Price increases won’t fall back to targeted levels until 2024, the CBO said.
“There remains a significant gap between consumers’ demand and businesses’ ability to supply it,” said Adam Ozimek, chief economist at the Economic Innovation Group. “People’s desire to consume more goods than businesses can produce is leading to a rise in prices, and consumers are going to feel that in their pocketbooks.”
Biden’s administration will likely concentrate on low unemployment, the growing economy, and the shrinking deficit. The CBO predicts a 3.1% growth but that’s still nothing like 5.5% growth we saw in 2021.
Wonderful. I won’t deny that’s awesome news.
Guess what Americans care about? Rising prices. Leftist think tank Economic Policy Institute tried to gloss over the problem: “Other than maybe fuel and energy prices, I think we’ll see a deceleration of inflation.”
Um, yay? How about those food prices especially since Russia is holding grain hostage in Ukraine. The CBO thinks price increases won’t happen again. The group did not say, from what I can tell, that prices would decrease.
Great so the worst is over but it’s not going to get better anytime soon.
Americans want to see lower prices at the grocery stores and gas stations. That’s not going to happen.DONATE
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