LATEST FORECASTS: INFLATION TO MODERATE OVER THE COURSE OF 2022
FOR IMMEDIATE RELEASE: January 11, 2022
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LATEST FORECASTS: INFLATION TO MODERATE OVER THE COURSE OF 2022
President Biden committed to driving down prices, strengthening supply chain, boosting economic growth
WASHINGTON, D.C. — Yesterday’s new Blue Chip Economic Indicators report, a survey of more than 50 leading business economists, forecasts that inflation pressures are expected to moderate in the United States in the months ahead, with year-over-year inflation measures expected to come down as the Biden-Harris Administration works on every front to bring down prices for American families. This forecast falls in line with other private and public sector forecasts that expect inflation to moderate over the coming year.
While elevated prices in the short-term reflect the re-opening of the economy and stickiness in prices for commodities like used cars, multiple forecasts indicate that price pressures will ease over the course of 2022:
- Blue Chip Economic Indicators 2022 forecasts that CPI will fall to 3.0% by Q4 of 2022, and 2.4% by Q4 of 2023.
- Reuters: Federal Reserve Chair Jerome Powell “said he now thinks inflation will ease by the middle of this year,” with the Federal Reserve projecting inflation to fall to 2.6% by the end of 2022.
- The OECD projects inflation to fall to 3.1% by the end of 2022 and to 2.5% by the end of 2023, and Goldman Sachs expects inflation to fall to 2.7% by the end of 2022 and to 2.2% by the end of 2023.
- J.P. Morgan Outlook 2022: “We expect goods price inflation to prove transitory.”
Meanwhile, major economies around the world are seeing record-high inflation:
- CNBC: Spain’s annual inflation jumps to 6.7% at end of 2021, highest since 1989
- Financial Times: Eurozone inflation hits new record as energy and food prices soar
- CNBC: UK inflation hits 10-year high ahead of key Bank of England meeting
The Biden-Harris Administration continues to use every tool at its disposal to fix supply chain bottlenecks, drive down prices, and ensure the economic recovery reaches working and middle class families:
- WSJ: Americans’ Finances Got Stronger in the Pandemic—Confounding Early Fears
- “Though initial shutdowns caused unemployment to surge to levels not seen since the Great Depression, trillions of dollars in government stimulus and the economy’s swift, if turbulent, recovery helped many families reach a new level of financial security.”
- NYT: Biden Administration Moves to Fix Supply Chain Bottlenecks
- Des Moines Register: Biden unveils $1 billion plan to increase meatpacking competition, lower consumer prices
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