May 30, 2021 - Economy & Business

Prices expected to continue rising this summer

Graphic illustrating prices rising.
Graphic: Reuters

Prices are expected to keep rising this summer, pushed up by bottlenecks for materials and labor, and surging consumer demand, Reuters reports.

Why it matters: The "Memorial Day Weekend price index" showed leisure-related prices up about 4.3% since the pandemic began — more than overall consumer prices, which rose 3.1% over that period.

Our thought bubble: via Axios' Felix Salmon: Inflation fears are overdone.

  • Consumer prices aren't the real problem — we don’t even notice when prices on Amazon go up and down. What matters are the big things: housing, healthcare and college.

When people say "inflation," Felix notes, what they often mean is the feeling that a good lifestyle is increasingly unaffordable. That’s not really a function of retail prices.

  • And inflation figures reflect genuinely higher living standards for hourly workers, which feels like a tradeoff worth making.

Go deeper: "Don't fear inflation."

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