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Forecasting Inflation During the Pandemic: Who Got It Right?


Abstract: The sudden rise in inflation that started in 2021 was the largest in 40 years for the United States. The rapidity, size, and persistence of this increase took most observers by surprise. In this article, we conduct a retrospective analysis and compare the accuracy of inflation projections made before, during, and after the Covid-19 pandemic by three groups of people: individual households, professional forecasters, and policymakers on the Federal Open Market Committee (FOMC) of the Federal Reserve System.

JEL Classification: E31; E37; E52; E58;

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Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2025-09

Volume: 513

Pages: 11