- Inflation remains an ongoing concern in 2021.
- While inflation is higher and likely to remain elevated due to challenges created by the pandemic, a look into the structural composition and the types of inflation may provide insight into how high inflation may go.
Inflation remains a topic of concern in 2021 as the prices of goods and services have continued to increase. The September inflation report showed consumer prices rose at 5.4% (https://www.bls.gov/news.release/pdf/cpi.pdf.)
With elevated inflation, it’s not surprising for investors to wonder how long this trend is going to last. The Federal Reserve has acknowledged that inflation expectations have risen, but have qualified the recent inflation spike as “transitory,” or in other words, temporary. A deeper look at how inflation is measured may provide some insights into why the Fed takes this stance.
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