President Clinton said on Thursday that forces in the U.S. economy were still working to prevent a
resurgence of inflation, despite mounting concerns in financial
markets about rising consumer prices.
"I think that the larger forces are still operating against
the resumption of inflation," Clinton told CNBC. "So far, I
feel pretty good about where we are on inflation."
Asked whether he shared the bond market's growing concern
about inflation in light of data showing strong U.S. retail
sales and rising consumer prices, Clinton said: "I think the
evidence is mixed."
Increases in productivity and a lack of strong upward
pressure on wages should help counteract any inflationary
pressure generated by retail sales, he said.
"There's still been remarkable increases in productivity...
the government is trying to get out of the debt market and make
it more liquid; wages still aren't going up in any unreasonable
amount; productivity driven by technology is going up a lot; and
we're still trying to keep our markets very open," he said.
Clinton acknowledged that there could be upticks in certain
prices, such as last year's rise in oil prices, or that prices
could rise due to bottlenecks in production. He said, however,
that he felt fairly confident that inflation would remain under