Supply chain and hiring challenges contribute to higher prices.
A report released Thursday by the Department of Labor revealed that consumer prices increased 5 percent for the year ending in May. The increased numbers from the consumer price index mark the largest 12-month increase since August 2008. The numbers were also higher than forecasters had predicted.
“Consumer prices are continuing to move up on base effects, supply chain disruptions, as well as the reopening. Stronger demand, especially for services, as well as supply bottlenecks will provide a lift in the near term,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “But the pace should stabilize and moderate as reopening effects fade and once supply catches up.”
Treasury Secretary Janet Yellen said over the weekend that the nation could see inflation up to 3 percent throughout the rest of the year, and that she doesn’t “see any evidence that inflation expectations are getting out of control.”
As the Lord Leads, Pray with Us…
- For U.S. government officials who track the increase in consumer prices.
- For federal, state, and local officials seeking to motivate workers to fill open positions.
- For wisdom for Congress and the Federal Reserve as they assess whether or not to take action to stem rising inflation.
Sources: Wall Street Journal, Washington Examiner
