Inflation Figures To Be With Us A While Longer
Regions Economic Preview
December 6, 2021
Inflation forecasts by Regions Bank have hit their highest level since June 1982. The Birmingham-based financial company expects last month’s Consumer Price Index (CPI) read to come in at 0.8 percent, which translates into a year-over-year rate of 7 percent. “Inflation pressures have broadened over the last few months,” says Chief Economist Rick Moody. While Moody sees early signs that supply-chain bottlenecks may be easing, it is too soon to expect relief in the prices of “core goods” — consumer products excluding energy and food. “As such, we look for another sizable increase in core goods prices, aided by further sharp increases in prices for new and used motor vehicles,” says Moody, who calls the new Omicron variant of the COVID virus “a wild card in the inflation outlook.”
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