The U.S. economy grew at a moderate rate in the third quarter of 2021 as inflation remained elevated, according to the data released by U.S. Bureau of Economic Analysis (BEA).
Real Gross Domestic Product (GDP) came in at 2.3% annualized beating Reuters poll forecast of 2.1%. The third quarter number is way below second quarter’s number of 6.7%.
Meanwhile, Personal Consumption Expenditures (PCE) prices increased at an annual; rate of 5.3% in third quarter 2021 which is in line with estimates.
When these two numbers are taken together it makes a solid case for stagflation with slowing growth and elevated inflation, making job of policy makers much more complicated.