Stronger-than-expected U.S. economic growth that's pushed thejobless rate to a five-decade low will contribute to an uptick ininflation this year, according to the Congressional Budget Office(CBO).

In its budget and economic outlook through 2030, the nonpartisanagency projects that gross domestic product (GDP) will rise 2.2percent this year, up 0.1 percentage point from its Augustestimate. A measure of prices excluding food and energy is alsoprojected to increase 2.2 percent, just above the Federal Reserve'sgoal. At the same time, the U.S. budget deficit will exceed $1trillion in the fiscal year that ends in September, similar to theagency's previous forecast.

"We also project that for several years, the economy will beproducing more than what we estimate to be its sustainable level ofoutput, leading to higher inflation and interest rates after adecade in which both remained low," Phillip Swagel, director of theCBO, said in a statement accompanying the annual long-termforecast.