Gita Gopinath, Chief Economist of the International Monetary Fund (IMF), said on Sunday that inflationary pressure will likely continue into the middle of next year.
CBS’s “Face the Nation” host Margaret Brennan asked Gopinath how much longer the cost of goods could continue to rise before “we lose control,” noting that Proctor & Gamble has recently said it will have to raise the prices of some of its basic goods. “Inflation has indeed come up high in these last several months. Now some of that was expected after a deep recession last year. We’ve had a rebound in global demand,” Gopinath said. “We’ve seen commodity prices come back up after crashing last year. But we’re also now seeing the frictions between supply and demand not matching up.
Gopinath stated that supply chain issues are ongoing as the “grip of the pandemic” continues to hinder global trade, even though pandemic conditions have improved somewhat. “The way we see it is that these pressures will remain until sometime in the middle of next year. And then we see us returning to more normal levels of inflation towards the end of next year. But this is going to take some time and we are certainly seeing costs go up,” the IMF official said.
Gopinath’s forecast echoes that of U.S. Treasury Secretary Janet Yellen who said on Sunday that she anticipates inflation rates will return to normal in the second half of 2022. “I expect that to happen next year,” Yellen said when asked by CNN’s Jake Tapper when inflation would fall back within the normal, two-percent range.
“Inflation will remain high into next year because of what’s already happened, but I expect improvement by the middle to end of next year, second half of next year,” said Yellen. “The COVID crisis markedly diminished spending on services and caused a reallocation of spending towards goods. The supply of goods to Americans has increased substantially, but there’s still pressure there” [The Hill].
- Christianity Today
- Constitution 101
- Creation Corner
- Entertainment Today
- First Amendment
- Foundation of our Nation
- Guest Columns
- Human Interest
- Ignite the Pulpit
- Let's Talk
- Money matters
- Racial Issues
- Tea Party
- Trump elevator pitch
- World news
News5 days ago
Texas Governor Greg Abbott announces he is bussing migrants to New York City, sparking heavy criticism
Judicial3 days ago
Bodega clerk who defended himself from attacker will be moving back to Dominican Republic
Executive3 days ago
Inflation Reduction Act?
News2 days ago
Albuquerque police arrest man allegedly responsible for murders of four Muslim men
Entertainment Today20 hours ago
Canadian rock guitarist found dead in home, with own son suspected of his murder
Constitution1 day ago
Merrick Garland on the hot seat
Constitution2 days ago
Trump home raided – are we next?
Judicial5 days ago
Jury to now decide on punitive damages in Alex Jones defamation lawsuit