Signs of inflation are emerging | Visa


Inflation: The price of recovery?

Q1 real GDP growth was revised downward and new risks to the outlook are emerging.

Illustration of a bar chart showing seasonally adjusted real gross domestic product, with compound annual growth. See real GDP image description.
A bar chart showing seasonally adjusted real GDP, with compound annual growth ranging from 2.9% in March 2019 to -31.4% in June 2020, 33.4% in September 2020 and finishing 2020 at 4.1%, with growth forecast to reach 3.3% by year-end 2021 and 2.9% by year-end 2022. YoY growth ranged from 2.3% to -9% between March 2019 and June 2020, and finished 2020 at -2.4%. YoY growth is forecast to reach 4.1% by year-end 2021 and 2.9% by year-end 2022.
Illustration of a line chart showing the percent change in year-over-year nominal consumer spending. See consumer spending image description.
A line chart showing the percent change in YoY nominal consumer spending, ranging from 4.6% in March 2018 to -9.7% in June 2020, -1.5% in December 2020, and forecast to reach 7.9% by year-end 2021 and 4.2% by year-end 2022, compared to real personal consumption expenditures (PCE) ranging from 2.6% in March 2018 to -10.2% June 2020 and -2.6% in December 2020, with growth forecast to reach 4.4% by year-end 2021 and 2.3% by year-end 2022.