BDE report: PR inflation in line with US trend
By John McPhaul
Economic Development Bank for Puerto Rico (BDE by its Spanish initials) President Luis Alemañy said Tuesday that the latest report from the BDE’s Center for Economic Studies validates that the inflationary outlook in the United States is in line with the increase in prices perceived by local consumers.
“We continue to use our new Center for Economic Studies to educate and enlighten our entrepreneurs and consumers on important economic issues and their impact, consistent with Gov. Pedro Pierluisi’s vision of supporting small and medium-sized businesses and consumers,” Alemañy said in a written statement along with BDE economists Gladys Medina and Juan Carlos González Ruiz. “That is why today we are publishing this report which establishes that the inflationary outlook in the United States presents a rhythm consistent with the increase in prices that consumers on the island notice in some products.”
“From the lowest point recorded in June of last year (-1.7 percent), the inflation rate in Puerto Rico has maintained an upward growth rate, reaching 3.3 percent in August 2021. By September 2021, inflation in the United States is at 5.4% according to the consumer price index and 8.6% according to the producer price index,” Alemañy noted. “The Federal Reserve System (Fed), which is the central bank in charge of establishing the monetary policy of the United States, maintains the goals of reaching maximum employment and maintaining the national inflation rate at 2%. The Fed estimated that inflation will average 4.2% at the end of this year and that it will decline to 2.2% next year. The rise is due to various factors such as interruptions and bottlenecks in supply chains, which have limited the supply of some products and services. Also due to increases in demand according to the restrictions imposed to manage the pandemic, they are moderated and the indicators of economic activity and employment improve.”