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Economists React: Inflation Expected to Cool This Year
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The U.S. inflation report for December showed prices accelerating at the fastest pace in almost 40 years. But history isn’t much of a guide in this case, economists say, because today’s inflation is caused primarily by factors related to the Covid-19 pandemic and should fade in the coming months.
The past few months of price increases come from both a surge in consumer demand following the Biden administration’s economic stimulus programs and supply shortages caused by a logjam at factories and U.S. ports.
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