Despite an uncertain consensus (see The Consensus Outlook on Inflation is… Uncertain!) on the risk for a period of prolonged inflation, a narrative is starting to develop that inflation is actually here.  The real question is whether the inflation is transitory, prolonged, or perhaps something in between.

Will it stay or will it go?

Here are some inflationary observations by John Cochrane, senior fellow of the Hoover Institution at Stanford University, former finance professor at Chicago Booth, and known as The Grumpy Economist.  He notes that while the conversation continues around the transitory nature of the current rise in pricing for everyday items, this may represent the beginning of a more persistent trend of rising prices.

Whether inflation settles back once supply chain issues get resolved or not is almost immaterial.  The point here- after about twenty-five years of living with persistently low inflation, the current environment has shown that inflation does indeed exist.  Let’s just hope it doesn’t turn into a scenario like that of the 1970’s.  Enjoy the read!

Read the piece here- The end of ‘the end of inflation’

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