Daiwa Capital Markets list supply-chain bottlenecks, tight labour markets, ultra-easy monetary and fiscal policies as likely to keep US inflation its highest since 1991.
The comments are contained in a Wall Street Journal report on economist survey expectations for US CPI in the months ahead, in brief:
- Economists on average see inflation at 5.25% in December, just slightly less than the rate that has prevailed since June. Assuming a similar level in October and November, that would mark the longest inflation has been above 5% since early 1991.
- will drop to 3.4% by June of next year, then 2.6% by the end of 2022