UC research: Don’t be alarmed by rising prices for homes, cars, and gas
The cost of homes is soaring — and so is the cost of the lumber to build them. The price of cars and gas are up sharply, too, as are prices for products ranging from corn to computer chips. Now worries are rising that as the post-pandemic economy comes back to life, a sustained surge of inflation could undermine the recovery.
The U.S. Department of Labor reported yesterday that the Consumer Price Index rose 5 percent in May, following a 4.2 percent jump in April. But at UC Berkeley, high-level economists are offering some calming advice: A measure of inflation is inevitable as the U.S. economy comes back online, but it will likely be modest. And it will almost certainly blow over as the economy stabilizes.inflation, prices, UC Berkeley