The White House is bracing for another bad report Wednesday on inflation — but now expects it to slow down by the end of the year, administration officials tell Axios.
Why it matters: The Biden administration had been labeling price hikes as “transitory.” By publicly warning the Consumer Price Index December reading shows inflation will linger through 2022, officials are trying to temper public expectations and minimize the bad-news blow.
- They also want to put U.S. inflation, which economists forecast will be 7% for the year in the report, into the context of surging global prices.
- Eurozone inflation increased to an all-time high of 5% in December.
- “We expect the print to be firm, as we have seen in the past few months,” Michael Pyle, the chief economic adviser to Vice President Kamala Harris, told Axios. “But we expect the trend lines, as we roll into 2022, to turn towards deceleration.”