4626 outlook

Economic Outlook: February 12, 2021

Feb 12, 2021  | Ep4626

Reports of inflation in the U.S. economy are gaining traction with those outside the circle of economic insiders.

Depending on the source, the rise in prices is either benign or malignant. ---

A surge in energy drove U.S. consumer prices higher in January by 0.3 percent, pulled higher by gasoline’s jump of 7.4 percent. 

Core CPI was flat with the removal of the volatile food and energy sector.

The pandemic is still dragging on the labor market and services industry as inflation is up 1.4 percent year-over-year.

Economic forecasts call for annual inflation to rise above 2 percent this spring when compared to a year earlier as the U.S. economy went into a recession.   

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