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Get Ready for the Great U.S. Inflation Mirage of 2021

  • Economy has some, but not all, ingredients for higher prices
  • Slack in job market seen as key in holding down inflation
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Using Unemployment to Tame Inflation

The story of U.S. inflation in 2021 could very well amount to this: It’s all a mirage.

Americans are likely to see prices jump across a variety of sectors next year, thanks in part to Covid-19 vaccines that will potentially turbocharge demand for such pandemic casualties as travel and tickets to sporting events.