What Drives Changes In Inflation?
from the St Louis Fed
– this post authored by YiLi Chien, Research Officer and Economist, and Julie Bennett, Research Associate
Inflation has been one of the hottest topics in 2021 thus far. A variety of factors – including low interest rates, pent-up demand and stimulus checks – have sparked discussion about increased inflation as the U.S. prepares to transition into a post-pandemic economy.
As the COVID-19 pandemic commenced, the 12-month rate of personal consumption expenditures (PCE) inflation dipped substantially, falling from 1.8% in February 2020 to 0.5% in April 2020. Since then, the inflation rate has largely trended upward, clocking in at 2.3% for March 2021 (the most recent data published).[ 1]
Source: http://econintersect.com/pages/contributors/contributor.php?post=202106070511
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