High inflation will last well into 2022, economists say, indicating that supply chain bottlenecks will keep increasing prices and curbing production.
Experts expect to see average inflation of 5.25% in December, slightly down from the current maximum predicted 5.4% figure, according to The Wall Street Journal. If inflation stays around its current level, Americans will experience the longest period during which inflation has stayed above 5% since 1991.
“It’s a perfect storm: supply-chain bottlenecks, tight labor markets, ultra-easy monetary and fiscal policies,” Michael Moran, Daiwa Capital Markets America’s chief economist, told the WSJ.
America’s shelter inflation could climb to 4-6% by the end of 2022 https://t.co/YohcsxdhWh
— The Economist (@TheEconomist) October 18, 2021
Economists believe that consumer price inflation will drop to 3.4% by June 2022 and 2.6% by the end of 2022, according to the WSJ. These figures remain 1.8% above the inflation level seen before the COVID-19 pandemic. (Read more from “High Inflation Expected To Last Well Into 2022” HERE)