WASHINGTON (AP) — The Congressional Budget Office says that high inflation will persist into next year.
This will likely cause the federal government to pay higher interest rates on its debt.
The nonpartisan agency expects that the consumer price index will rise 6.1% this year and 3.1% in 2023.
This forecast suggests that inflation will slow from current annual levels of 8.3%, yet it would still be dramatically above a long-term baseline of 2.3%.
The 10-year estimates do contain positive news as this year’s annual budget deficit will be $118 billion lower than forecast last year.
That’s a byproduct of the end of pandemic-related spending and the solid job growth it helped to spur.