Wednesday/ inflation now at 5%

The annual inflation rate for the United States was 5.0% for the 12 months ended May 2021, up from 4.2% for April, according to U.S. Labor Department data published on June 10.

Will the Federal Reserve Bank have to raise interest rates from zero much sooner than it had expected just a few months ago?

‘Based on central bankers’ fresh projections released Wednesday, the median Fed official expected to achieve the central bank’s goals and lift rates by late 2023. The Fed’s interest rate projections showed that more than half of its 18 officials expected rate increases by the end of that year. More, but not quite half, expected an increase or two in 2022.

That markup came as Fed officials offered headier economic forecasts. They now see growth coming in stronger in 2021, and expect inflation to average 3.4 percent in the final three months of the year. They expect that headline inflation gauge to retreat quickly, however, falling to 2.1 percent next year and 2.2 percent in 2023′.
– Jeanna Smialek reporting for the New York Times

Annual US inflation rates has been as low as 0.7% in 2015, and not much higher than 2.0% in any other year since 2012. There is a big debate among economists as to how long the recent, higher rates of 4.2% (for April) and 5% (for May) will persist.
[Cartoon by Robert Rich for]

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