U.S. economy: Higher inflation?

The Bureau of Labor Statistics (BLS) published its inflation data for June. Over the past 12 months, the price level increased by 5.4 percent. That’s quite a lot. U.S. inflation was once more somewhat higher than many expected. There is no need to panic and I still think that higher inflation is temporary but some people seem to (again) downplay the BLS report too much. Somewhat higher inflation than in the past years might be desirable, however, inflation is hard to control. So one should remain careful. I expect that inflation rates will gradually decrease in the next months, but remain somewhat higher than two percent also in 2022.

Here is the link to the BLS report:

https://www.bls.gov/news.release/cpi.nr0.htm

And here is my recent forecast for the U.S. economy:

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