The White House said it expects inflation to rise in new data but said measures will likely normalize later this year.
“We certainly anticipate … elevated inflation tomorrow, especially for the year-over-year measure which includes high inflation from nearly a year ago when the economy was reopening,” press secretary Jen Psaki told reporters Wednesday, but predicted that inflation would normalize by the end of the year.
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“We expect month-over-month inflation to moderate in the months ahead and forecasters generally expect the year-over-year measures to come down to more historically typical levels by the end of the year,” Psaki added.
New inflation numbers will be released on Wednesday, with forecasters predicting a 7% year-over-year increase since last month. Consumer prices rose 6.8% for the year ending in November, the fastest pace of inflation in decades.
“This, in part, reflects the fact that we continue to see consumer price increases,” Psaki added.
Prices are expected to stay elevated, despite President Joe Biden and other officials earlier this year asserting any increases were temporary.
On Tuesday, Psaki pointed to a comparison with Europe, where banking officials warned that inflation could last longer than expected.
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“We just saw record-setting inflation in Europe. I would note that their headline inflation is actually above us and has been for the last several months,” she said.
