The expansion of New Jersey’s economy that began in May 1997 will continue– though at a reduced rate–through the forecast period that ends in 2001. New Jersey’s job base has grown by 104,000 positions in the last year and a half. Its unemployment rate, 5.2% in May 1997, fell to 4.5% in October 1998. In October, the state’s unemployment rate was below the U.S. rate for the first time in several years. Price inflation in the state has been mild: the Consumer Price Index (CPI) for New York-New Jersey-Connecticut has risen 1.6% this year, while that for Pennsylvania-New Jersey-Delaware increased to just over 1%. These rates are comparable to U.S. consumer price inflation of about 1.5%.