U.S. inflation rose 5.4% in June, which marks the highest annual rate since 2008. However, some good news may be on the horizon as a survey shows economists expect inflation is to ease off historic highs later this year.
The economists were surveyed by the Wall Street Journal. The survey found the group raised their forecasts for U.S. gross domestic product (GDP) growth, with an average GDP now expected to advance to 9.1% annual pace in the second quarter, and 6.9% for the year. That would be the fastest year of growth since 1983.
The survey also showed signs that components of the U.S. economy have peaked, as inflation is expected to ease off historic highs, and GDP is expected to grow at a solid but slower pace.
Not every economist is on board with the forecast for inflation to slow. According to Pro Farmer, economists from Morgan Stanley said last week in a note to clients, “There is nothing more sinister going on here. Second half growth will still be quite elevated, for both GDP and inflation.”
