WASHINGTON — Federal Reserve policymakers have been presuming that the recent upsurge in consumer prices will prove “temporary” and that inflation will be “subdued” in the longer run, but a survey of business economists released Monday finds mounting signs of wage-price pressures along with greater optimism about the economic outlook.
The National Association for Business Economics announced that a larger share of the 55 member economists surveyed are reporting rising prices and rising wages. Nevertheless, the NABE members continue to expect “price stability” to be maintained.
The survey also found greater optimism about economic growth, anchored by higher sales and profits. But while employment is expected to rise, business investment is not.
Evidence of greater price pressures was not dramatic. The NABE said that the portion of firms reporting rising prices rose from 18% in its January survey to 21% in the April survey.
At the same time, though, the share of firms reporting falling prices rose from 3% to 12%. Those reporting “unchanged prices” rose from 67% to 78%.