As Prices Rise, Fed Dismisses Inflation Worries

Although inflationary pressures keep building in the U.S. economy, economists believe the Federal Reserve officials are unlikely to tighten monetary policy before seeing significant improvement in labor market recovery.

From gas to groceries, Americans have started to see price increases in recent weeks as the economy reopens. Used car and truck prices, for example, surged 21 percent year-over-year, including a 10 percent increase in April alone.

Surveys also show that U.S. businesses are raising prices for their goods and services at a rate not seen since the late 1970s and early 1980s, when inflation was running at double-digit rates.

Thirty-six percent of small business owners reported that they raised average selling prices in April, up 10 percentage points over the March reading, according to National Federation of Independent Business. This was the highest level, since 1981 when it was 43 percent. Price hikes were most common in wholesale and retail businesses, according to the survey