CBO: Inflation to remain elevated this year

Thru the Cycle President John Lonski warns inflation ‘could speed up again if the U.S. economy regains momentum.’ Sky-high inflation is expected to persist for the remainder of the year, further burdening U.S. households as they face steeper prices for everyday necessities, the Congressional Budget Office said Wednesday. The CBO, in its latest budget and economic outlook, projected that key measures of inflation will show signs of easing this year compared to 2021 but will remain uncomfortably high because of strong consumer demand and continued disruptions in the supply chain. The nonpartisan budget office estimated that the consumer price index, a wide-ranging measure of goods and services, including food, autos, gasoline, health care and rent, will hit 4.7% for the entirety of 2022. While that is down slightly from the 6.7% recorded in 2021 — the highest level in four decades — it’s still significantly higher than the Federal Reserve wants.Inflation is not expected to fall to the Fed’s preferred level of 2% until 20 …