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WASHINGTON – The United States frugalness has "tremendous possibleness to grow" without fueling inflation, the White House said weekday in a mostly upbeat inform to legislature even as officials said they were monitoring the gist of Mideast turmoil on oil prices, which could drive up consumer costs.

The annual report, prepared by President Barack Obama's Council of Economic Advisers, predicts a modest 1.4 proportionality process in the Consumer Price Index this year. Still, that prognosticate does not take into statement variables much as the continuing unrest in the Middle East, particularly oil-rich countries much as Libya.

"Whenever there's unrest in this part of the world, there are feat to be reactions in the markets," White House spokesman Jay Carney said. "Beyond that, the situation is fluid, and I don't want to put most where prices will go or some another possibleness things in the future. But we are obviously monitoring this carefully and we're concerned most it."

The relationship between oil prices and inflation has a integrated history. Price-per-barrel spikes have not direct correlated with inflationary jumps in the United States since the 1970s. What's more, the White House scheme inform shares the analyse of Federal Reserve Chairman Ben Bernanke that the current frugalness has significant dust — high unemployment, weak obligation — to offset inflationary pressures.

The White House inform is slightly more upbeat than president's 2012 budget released only early this month. The budget prognosticate ontogeny in the nation's large husbandly product of 2.7 proportionality in 2011; the new inform forecasts ontogeny of 3.1 percent. The inform states that the budget prognosticate did not incorporate the gist of the tax cuts passed by legislature during its lame-duck conference in December

"Although the recession generated devastating employ losses and an production decline of past proportions, the frugalness is no longer on the brink of a depression," the inform states. "Growth has resumed, jobs are returning, and unemployment is falling."

In another scheme developments, Obama titled leaders from playing and labor to his newly created jobs and competitiveness council. Many of them had served in his preceding scheme feat advisory board.

Among the members Obama announced weekday are AFL-CIO President Richard Trumka and Kenneth Chenault, the nous of dweller Express. Obama also titled Penny Pritzker, the finance advance for his 2008 statesmanly campaign, to the board.

The council is tasked with reaching up with ways to promote scheme ontogeny and assets in U.S. businesses. Obama will advance the council's first meeting, regular weekday at the White House.

Obama also filled a key vacancy on his Council of Economic Advisers, denotive Carl Shapiro as a member. Shapiro is an economist in the antitrust sectionalization at the Justice Department.

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