US Federal Agency Expects High Inflation To Persist

The US Congressional Budget Office (CBO) said Wednesday it expects high inflation to persist into 2023 and 2024, according to its Budget and Economic Outlook report.

The non-partisan federal agency said it estimates annual consumer inflation will average 6.1% this year, and then slow down to 3.1% next year and later down to 2.4% in the year after.

However, the 2.4% rate that is forecast to be reached in 2024 would still be higher than the US Federal Reserve's inflation target of 2%.

Annual consumer inflation in the US came at 8.5% in March and then 8.3% in April, hovering around the highest levels in more than 40 years.

The CBO also said it anticipates the US gross domestic product (GDP) to expand 3.1% this year, 2.2% in 2023, and 1.5% in 2024. -