Top Economists Expect Inflation to ‘Accelerate Strongly’ in Coming Weeks
District of Columbia | May 25, 2021
Economists expect inflation to “accelerate strongly” in the coming weeks and months, but said consumer prices would eventually moderate.
The consumer price index (CPI), a common measure for inflation, is expected to rise 2.8% in 2021 and 2.3% in 2022 compared to the 1.2% increase that occurred in 2020, according to economists surveyed by the National Association for Business Economics (NABE).
The projection, released Monday, reflected the Federal Reserve consensus that inflation will heat up by the end of the year before cooling down as the economic recovery continues.
“NABE panelists expect near-term inflation pressure, but anticipate it being short-lived,” National Federation of Independent Business Research Center Executive Director Holly Wade, who was the chair of the NABE survey, said in a statement. “Inflation expectations moved up significantly from those in the March survey, but panelists anticipate inflation easing in the second half of 2021, with no resurgence in 2022.”..
(Excerpts from the Virginia Star)