Supply-chain disruptions put pressure on prices.
The White House Office of Management and Budget more than doubled its forecast for annual inflation in new projections. They said it expected consumer prices would rise 4.8 percent in the fourth quarter from a year earlier, up sharply from the 2.9 percent rise that the administration had forecast in May.
Officials stated disruptions in the supply chain stemming from the COVID-19 pandemic continue to put pressure on prices. However, they anticipate price increases to quickly abate next year, saying the consumer price index increase would be at 2.5 percent in the fourth quarter of 2022. The new projection is still higher than the 2.1 percent they had forecast in May.
The updated projections are in line with other forecasts, including that of the Federal Reserve. “We think this trajectory is very much consistent with the inflation outlook we’ve been discussing pretty much since we got here,” one official stated last week.
As the Lord Leads, Pray with Us…
- For the president and his advisors as they assess the status of the national economy.
- For suppliers and distributors as they work to resume stable supply lines.
- For officials working to return the nation to normal in the wake of the pandemic.
Sources: Wall Street Journal, Bloomberg News
