White House Official: Headline US inflation will be elevated amid higher gas prices

A White House official said in a Fox News interview late Wednesday, they expect headline inflation to be elevated because gas prices were 8.5% greater in April than in May.

Key takeaways

Will seep into CORE inflation through airline tickets because of the price of jet fuel.

They believe that inflation will moderate and finish lower at the end of this year than the rate at the end of 2021.

The gains in the labor market & demand for goods don’t indicate we are in a recession. They said it is “very unlikely”.

The administration is in a “good spot to transition” the economy to stable growth.

They are tracking a shift is spending habits from buying goods to buying services.

They believe that shift will relieve pressure on supply chains as money moves from buying stuff to buying services.