More Bad News For Democrats

A panel of economists has raised sharply its prediction for economic growth to a very robust 4.7%.

A top panel of business economists upgraded their forecast for U.S. economic growth for the fourth time in a row to a robust 4.7 percent, but inflation expectations also picked up sharply, it said on Monday.

The National Association for Business Economics panel of 31 professional forecasters said rising energy and commodity prices would feed into 2.3 percent inflation this year -- up sharply from the forecast for a 1.6 percent rise in the consumer price index just three months ago.

Inflation for 2005 was also pegged at 2.3 percent -- up from 1.9 percent projected in the February outlook.

"One should conclude from the latest survey that the expansion is now on a solid and sustainable path. If there is a dark lining in this silver cloud, however, it is the upward revision to the panel's forecast of inflation for 2004 and 2005," chief economist Duncan Meldrum said in releasing NABE's May outlook survey.

Hmmm. 2.3% inflation doesn't sound all that frightening to me, but I suppose that press is obligated to temper economic good news as long as there is a Republican in the White House.