A snippet from a report via the Peterson Institute for International Economics (PIIE)
- Supply disruptions, pent up demand, and higher household savings have pushed 12-month core personal consumption expenditure (PCE) inflation (excluding food and energy) to ... its highest rate since the early 1990s.
Analysts at the firm say inflation and wage growth data do not suggest the spike will be enduring, and high inflation will not persist beyond 2022.
- supply pressures and worker shortages to ebb in 2022
- therefore inflation will gradually ease
The but is it is likely to remain higher than the FOMC anticipates
- leading to more aggressive monetary policy tightening, including an interest rate hike in 2022 and three or more in 2023.
Bolding mine.
