The thinking of White House officials is that a recent inflation surge could last for some time, but that the spike is ultimately transitory and will clear up once widespread bottlenecks that have severely disrupted the supply chain begin to dissipate.
The government reported Tuesday morning that prices for goods and services jumped by the most in 13 years, fueling concerns that a rapidly rebounding economy could lead to runaway growth. The Labor Department said in its monthly report that consumer prices rose 0.9% from May and 5.4% over the past year.
Excluding volatile oil and gas prices, so-called core inflation jumped 4.5% over the past year, the largest increase since November 1991.
The pickup in consumer prices has coincided with the economy’s stronger-than-expected recovery from the pandemic as Americans, flush with stimulus cash, eagerly start spending again, splurging on everything from vacations to new clothing.
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