Fed's Bostic: U.S. in phase of volatile prices, uncertain labor supply

WASHINGTON, May 12 (Reuters) - The U.S. economy is in a "transitional period" as it reopens from the pandemic, with inflation likely to be volatile and workers closely considering their options, Atlanta Federal Reserve Bank President Raphael Bostic said.

Both the demand for and the supply of workers, goods and services is unsettled now, Bostic said, and "we are going to see a lot of volatility in prices and pricing ... Workers are trying to figure out what their place should be post pandemic."

The Fed has been surprised over the last week by a 4.2% annual inflation rate reported on Wednesday, and a weak April jobs report last week.

(Reporting by Howard Schneider Editing by Chris Reese)