The April inflation rate was reported at 8.3%, slightly lower than March's number but still at a 40-year high.
Ford School professor Betsey Stevenson told the Washington Post that while it’s hard to draw sweeping conclusions from one inflation report, April’s data could help clarify the direction of economic head winds.
“The economy is in a really unusual place, because we’ve just had so many industries that have been fundamentally impacted by covid,” Stevenson said. “Demand shifted from services and toward goods in a way we predict is going to reverse, but we don’t know for sure."
On CNN, Stevenson noted that families see prices going up for gas and food and they are frustrated. "But what we did see this month was we didn't see the same kind of increase... If we keep getting numbers like April, it's getting better. And I think that's the real hopeful side," she added.
However, she said, "there a risk of future inflation on the horizon that comes as consumers start to want to get out more, get over COVID and they want to purchase more services, they want to get on those airplanes, they want to go on vacation, they want to go out to dinner. And the fear is that we can't hire workers to meet that demand. We're going to see inflation in places we haven't seen it."
You can see the original articles:
Pace of inflation eases slightly in April but still at 40-year high, Washington Post, May 11, 2020
U.S. Inflation Slowed Last Month CNN, May 11, 2020
