Economics
U.S. Commerce Chief Dismisses Idea Inflation Spike Will Persist
- While price rise is significant, ‘we believe it’s temporary’
- Says infrastructure investment will boost productivity
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U.S. Commerce Secretary Gina Raimondo dismissed the idea that the recent inflation surge will persist, saying it’s largely tied to economic reopening and supply bottlenecks.
“There still aren’t a lot of signs of persistent long-term inflation,” Raimondo said in an interview Wednesday with Bloomberg editors and reporters in Washington. She said more than 70% of the recent price increases are in product categories directly related to the pandemic, with higher car prices, for example, owing to a shortage in computer chips.