White House "High Possibility of Inflation"

Emphasizing That It Is a Temporary Phenomenon

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The White House in the United States has expressed concerns about inflation but stated that it is a temporary phenomenon.

White House Press Secretary Jen Psaki responded on the 11th (local time) during a regular briefing to a question about whether the rise in gasoline prices caused by the Colonial Pipeline shutdown would affect the government's inflation outlook, saying, "We take the possibility of inflation seriously."

Psaki added, "Most economists believe that inflation will be temporary."

With the Colonial Pipeline, which was hacked, still out of operation, some states in the U.S. are witnessing gasoline shortages and rising prices.

According to the American Automobile Association (AAA) on the same day, the national average gasoline price reached $2.985 per gallon. This is the highest level in seven years since 2014.

On the fifth day of the Colonial Pipeline shutdown, according to the Associated Press, more than 1,000 gas stations in the southeastern region are reporting gasoline shortages. This is explained by many drivers rushing to purchase gasoline before it runs out.

Gasoline prices have a significant impact on inflation. On the 12th, the consumer price index for April will be released. The Dow Jones compiled April's consumer price index increase rate at 3.6%, with a significant portion reflecting the rise in gasoline prices. The core consumer price index, excluding volatile gasoline and food, is expected to rise by 2.3%.

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