White House Revises Inflation Forecast From 2% to 4.8%
The White House, through the Office of Management and Budget, revised its inflation forecast for the rest of the year. It more than doubled projections for inflation at 4.8% compared to the 2% forecast last May.
RELATED: Inflation Goes Wild: Consumer Prices Up 5% In May
Inflation Forecast, Consumer Prices to Rise by 4.8% in the Fourth Quarter of 2021
Management and Budget officials said they expect consumer prices to rise by 4.8% by the last quarter of the year. This is a sharp boost from the earlier 2.1% projection they made in May.
However, officials foresee the same price pressures cooling off by next year. This will put the Consumer Price Index at 2.5% in 2022. They also see the CPI hitting 2.3% in 2023.
The updated inflation forecast remained consistent with other independent analyses. This includes projections from the US Federal Reserve.
They all reflect the administration’s belief that price pressures will fade over time. This is despite the fact that prices went higher than expected this year.
Trajectory Consistent With Inflation Forecast
A Budget and Management official went on a call with the media regarding the revised inflation forecast. “We believe this trajectory is very consistent with the inflation outlook that we have been discussing pretty much since we’ve been here,” he said. Recent data suggests that inflationary pressures already began easing up. However, they still remain elevated.
Meanwhile, consumer prices rose by 0.4% last month. This is 0.1% less than the 0.5% increase registered in July. This is according to the Federal Reserve’s preferred inflation indicator. In contrast, overall prices increased 4.2% a year ago.
Administration Also Boosted Economic Growth Estimates
The revised inflation forecast is part of the administration’s mid-session budget review. In addition, the White House also adjusted its annual economic growth estimates to 7.2%. Originally, the federal government foresaw a 5% growth rate last May.
Officials also see a lower deficit than expected for the fiscal year 2021. Instead of the original projection of $3.7 trillion, they now put the deficit at only $3.1 trillion, a savings of $555 billion.
As a result, the measure of the deficit as a share of the economy also fell. From a previous estimate of 16.7%, the share is now seen at around 13.9%.
However, the White House still sees deficits to exceed $1 trillion a year until 2030. Thankfully, the cumulative total will be lower by $684 billion.
‘No Way To Avoid Inflation’
Meanwhile, Brandon Arnold, Executive Vice President of the National Taxpayers Union says that right now, Americans have no way to avoid inflation. “It's gasoline, it's your energy costs to keep your lights on in your house, it's the groceries that you're buying, the back to school supplies,” said Arnold to The National Desk’s Jan Jeffcoat.
“The biggest issue that I'm watching right now of course is what happens in Washington. Are we going to embark on another massive tax and spend endeavor that will exacerbate inflation?”
Arnold suggested some measures to combat inflation. This includes “cutting the tariffs that were put into place over recent years.
We should not be paying additional amounts of money to buy sneakers for our kids, or backpacks for our kids, rulers, things like that,” he said.
“My biggest argument for the president here would be to try to do less $3.5 trillion in new spending, and higher taxes and borrowing, that's going to make the problem worse.”
Infrastructure Plan Is Lavish Spending
Even as he admitted that the US will need to spend on infrastructure, Arnold wants less. He called the $3.5 trillion infrastructure bill “lavish spending” and wants none of it.
“There Are all sorts of wasteful spending in this bill, and our economy cannot afford it. Taxpayers cannot afford to shoulder this additional burden at this time, we're still in a fragile economic recovery,” he added.
Watch Anthony Pompliano’s video discussing that the White House is now saying that we should expect high inflation:
What do you think of the White House’s revised inflation forecast? What do you think happened to their earlier declarations of controlled price increases?
Tell us what you think about the US inflation forecast. Share your comments below.
This is like watching Gilligans Island on repeat, one screw up after another. This administration makes Carter look good.
Another nail in the USA coffin.
Just wait until the Taliban sends over a US Blackhawk on a cargo ship that was left in Afghanistan. They’ll fill it with missiles and explosives and will be able to fly without concern to whatever military target they want to attack in the eastern US
I think that the White House and most of the rest in Washington don’t even know what day it is 90% of the time.
How is inflation transitory? Tell me who is going to give back the raise that they received ? How will gas get back to 1.70 a gallon ? It will not happen inflation is much higher than the government reports and we rear its ugly head until we get better more sustainable polices out of our selfless narcissistic politicians !
Their earlier revised inflation forecast of 2% was just a ploy to keep everyone meek. The Dems know it will be steeper than 4.8. I betcha any amount of money on that!Hahaha
A person has got to wonder? Is Joe Biden working for the American people or is it the country of China? As a legal USA citizen, I am
really beginning to wonder who is in who’s pocket!!!!
Why can’t Biden use the stimulus money that we was supposed to get to lower inflation? What happened to all that money 💰
Ronald Regan said it BEST we’re from the GOVERMENT we’re here to HELP !! LMAO!!
VOTE THEM ALL OUT!!! They need the live like common people, and only then they would work for the people !!
I don’t joe Biden knows how to make important decisions about our countries policies and he is too old to be the president of the United States. I think we need Donald trump back in the White House.the Democratic would never admit that they couldn’t make the right decisions about our policies.that’s why trump called joe Biden slepply joe.
Unfortunately, most Americans do not understand how they are affected by inflation. They do not realize that no matter how much the minimum wage is increased, it will never keep up with the rising costs of fuel, food, rent, and all goods and services. The fact that projections are twice as high as originally reported, is a sign of the disintegrating value of the dollar, as well as our quality of life.
The American public is tired of being taken for a bunch of saps. Governance is not a PR campaign.
I agree with Julie. Also on top of this inflation effecting everyone in the country it really effects the fixed income recipients. I am on SS disability. The Social Security COLA for 2021 was 1.3%. That was not anywhere near what inflation actually was. So as the government keeps trying to deceive the citizens they are really f__king over the ss recipients that are on a fixed income. I dont plan on them fixing that problem anytime soon. Anyways just wanted to make my statement. Thank you.
I have to say that the problem rests with Biden…He is a
Total ASSHOLE. We MUST get this traitor out of the Whitehouse..
When you inflate the federal budget by trillions of dollars you create inflation. If the Dems keep trying to implement AOC’s incredibly stupid Green New Deal, we’ll be back to the double digit inflation of the late 70’s.
Trying to wean America off oil is going to bankrupt us. Our administration is packed with a bunch of over aged hippies with no attachment to the real world. They want to create some ideal 60’s utopia where everyone holds hands and sings “We are the world.” That is, if you don’t dare challenge their fantasy. If you do, then all bets are off. They’ll attack you quickly and imply that you have no soul.
That’s what they are saying when they accuse conservatives of racism. It’s the same as calling us heretics. Which is what we are, because their “woke” religion is really just a cult. A cult begun by the Weatherman and other radical groups in the 1960’s. People like Bill and Hillary Clinton were part of that mindset in college. Friends of today’s leading Deomcrats are people like Bill Ayers, leader of the former Weather underground, and admittedly communist organization and Susan Rosenberg, member of the May 19th Communist Organization. She is known to have committed armored truck robberies and explosions in government buildings. In other words, two violent, terrorist communists. I know, because I met some radicals in Berkeley in the early 70’s. They hated the US government and anything to do with capitalism. Hard-core communists. I got away from them as quickly as I could.
I still remember long lines at the gas stations, although that was partially due to OPEC and the seven sisters.(major oil companies.)
In the last ten years, my disposable income has gone from about $400 a month after expenses to less than $100. If inflation keeps rising, even that will disappear. On a fixed income, that is frightening. Food prices have skyrocketed. Milk prices have more than doubled from $189 a gallon to $4.15 at Publix last week. What does that do to low income mothers who have to feed milk to their children?
Meat and fish are becoming out of the financial range of low income/retired people. We are told to eat healthy, but they charge a fortune for healthy food, like salmon, for example. Five years ago, salmon was about $2-3 a pound. Now it’s as high as $10 or more for the caught variety.
You want to know why Americans are becoming obese? Because high carb, fattening foods are cheap! One box of pasta is $1.20 or so. That’s four meals for single person. One head of broccoli is $3.
That’s pretty expensive for a side dish.
This is the mindset that is running our nation right now. These people will stop at nothing to accomplish their goal…the complete destruction of the American system of laws.
President Biden is simply their puppet. The real perpetrators are Obama, Hillary and Bill Clinton through the Clinton foundation and Nancy Pelosi…and their handlers and financiers.
This is nothing more than an attack on everything to do with the US Constitution and system of government. They must be stopped.