The US may be stuck with higher inflation in 2022, and potentially beyond

As the world economy begins its recovery from the COVID-19 pandemic, year-on-year inflation rates have reached their highest levels in over three decades. Will this increased inflation be temporary or is it here to stay? To address these questions, Patricia Sanchez Juanino, Corrado Macchiarelli and Barry Naisbitt discuss US inflation scenarios for the next 18 months. They find it likely that inflation will peak at 5 percent over the next few months, and stay close to 4 percent in the near term: it may stay that way, if, for instance, expectations about inflation continue to build.