How long will it last? | Smart Change: Personal Finance | helenair.com – Independent Record

Elevated consumer price inflation could endure as long as companies struggle to keep up with consumers’ demand for goods and services. A recovering job market — employers added a record 6.7 million jobs last year and are adding 560,000 a month so far this year — means that Americans as a whole can continue to splurge on everything from lawn furniture to electronics.

Many economists foresee inflation staying well above the Fed’s 2% annual target this year. But relief from higher prices might be coming. Jammed-up supply chains are beginning to show some signs of improvement, at least in some industries. The Fed’s pivot away from easy-money policies toward an anti-inflationary policy could eventually reduce consumer demand. There will be no repeat of last year’s COVID relief checks from Washington. Inflation itself is eroding purchasing power and might force some consumers to shave spending.

At the same time, new COVID variants could cloud the outlook — either by causing outbreaks that force factories and ports to close and disrupt supply chains even more or by keeping people home and reducing demand for goods.

Source: https://helenair.com/business/investment/personal-finance/how-long-will-it-last/image_26cac0d1-c4fb-57f4-8e0f-4a5e708760cc.html

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