Inflation came in strong and wage growth remained elevated at the end of 2021. At the same time, consumer spending fell in December as spiraling coronavirus caseloads kept many Americans at home and persistent supply chain bottlenecks disrupted holiday shopping.
Those indicators, released on Friday, underline that despite plummeting unemployment and a strong rebound in growth, the economy — like the country itself — has yet to break free of the pandemic’s grip. That is making for a confusing and contradictory moment headed into 2022.
Rising prices and an unflagging pandemic are…
