The U.S. inflation rate reached a 13-year high recently, triggering a debate about whether the country is entering an inflationary period similar to the 1970s.
- The updated projections are consistent with other independent forecasts, including from the Federal Reserve, and reflect the administration’s view that price pressures, while higher than expected earlier this year, are likely to fade over time, administration officials said Friday.
- “We think this trajectory is very much consistent with the inflation outlook we’ve been discussing pretty much since we got here,” one official said on a call with reporters.
- Recent data suggest inflation pressures may have started easing but remain elevated. Consumer prices rose 0.4% last month, lower than the prior month’s 0.5% gain, according to the Federal Reserve’s preferred inflation gauge. Compared with a year ago, overall prices rose 4.2%.