Oil prices are at their highest level in more than a year, a fact that doesn’t bode well for the inflation situation and could complicate the Federal Reserve’s plans.
The economy grew at a 2.1% annual rate in the second quarter of this year, near the 2.2% rate the quarter before, the Bureau of Economic Analysis reported Thursday morning in its third and final estimate of the gross domestic product.
Reports show that inflation ticked up last month, but most economists and investors still think the Federal Reserve will hold off on hiking interest rates again at its meeting next week.
Inflation increased to a 3.7% rate for the year ending in August, the second such increase after a full year of declines, driven in large part by rising gas prices.