Growth in the inflation-adjusted (real) gross domestic product (GDP) surged to an annualized rate of 4.8%, the fastest growth in 2-½ years and more than twice the 1.7% rate posted in the 4th quarter of last year. Strong employment growth, averaging about 200,000 new payroll jobs in each of the first three months of this year, and continued low unemployment has helped support overall economic growth. Energy prices remain elevated, but recent accelerations have not passed through significantly to prices of other goods and services. Outside of energy prices, inflation remains generally well contained and measures of inflation expectations seem stable.