The Lead: Inflation Double Trouble
Inflation looks to double the previously forecasted rate, according to the Office of Management and Budget. The White House had predicted that inflation would rise 2% this year but the forecast now has that rate at 4.8%.
This is for consumer prices. So no, you’re not imagining it. Everything is more expensive these days. Experts say that this is largely a result of supply chain disruption from the pandemic.
The good news is that the forecast for 2022 is better. The consumer-price index should only rise 2.5% by the end of 2022 and 2.3% by 2023. So hold on tight because it is supposed to get worse before it gets better.
Inflation could be the thorn in the side of Democrats trying to pass President Biden's $3.5 trillion dollar stimulus package. Senator Joe Manchin, who previously voted to advance the bill, nows says we can't afford the price tag.