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US consumer prices increased the most in nearly nine years in March: 0.6% over the prior month and 2.6% over last year as gas contributed more than half of the increase, up 9.1% month over month.
So, is inflation to be worried about now? Many experts say no. Consider where we were last March: inside watching Tiger King, spending money on nothing but toilet paper and desk organizers. A big annual increase in prices simply doesn't tell us much when the point of comparison is so abnormal. Some economists are concerned that too much stimulus will cause an overheated economy. Former Treasury Secretary Larry Summers told the FT, "I'm concerned that what is being done is substantially excessive."
Looking ahead…the Fed expects a temporary bump in prices that will smooth out once supply chains figure their Suez out.
US consumer prices increased the most in nearly nine years in March: 0.6% over the prior month and 2.6% over last year as gas contributed more than half of the increase, up 9.1% month over month.
So, is inflation to be worried about now? Many experts say no. Consider where we were last March: inside watching Tiger King, spending money on nothing but toilet paper and desk organizers. A big annual increase in prices simply doesn't tell us much when the point of comparison is so abnormal. Some economists are concerned that too much stimulus will cause an overheated economy. Former Treasury Secretary Larry Summers told the FT, "I'm concerned that what is being done is substantially excessive."
Looking ahead…the Fed expects a temporary bump in prices that will smooth out once supply chains figure their Suez out.
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