The White House is sending mixed messages on the United States’s post-pandemic inflationary run, with quiet signals suggesting the period might last years longer than administration officials have publicly indicated.
The Consumer Price Index report for May published by the Bureau of Labor Statistics showed that year-over-year inflation jumped 5.4%, marking three straight months of increases and the single-largest increase since the Great Recession of 2008.
Still, the White House’s Council of Economic Advisers noted roughly 60% of that increase could be attributed to auto industry demand, exacerbated by severe semiconductor shortages.
Cars once again accounted for a large share of the increase. Used cars, new cars, auto parts, and car rentals together made up about 60 percent of core month-over-month inflation 2/ pic.twitter.com/SeYSQZXRjy
— Council of Economic Advisers (@WhiteHouseCEA) July 13, 2021
The Biden administration previously identified semiconductors as one of four areas with major supply chain deficiencies. Yet, Sameera Fazili,