Is it time to worry about inflation? Some experts say the rising prices will be short-lived
WASHINGTON — The unsettling headlines about surging prices arrive almost daily:
Biggest 12 month inflation spike since 2008. Rising airfares and hotel rates are making vacations more expensive. Car prices are soaring and they’re not going to stop. Sky high prices for homes may be scaring off buyers.
A blast of economic activity triggered by the end of COVID restrictions has sent prices for a variety of products and services skyward. High inflation could derail the recovery, and, in an unlikely worst-case scenario, bog down the economy for years as it did in the 1970s and early 1980s.
It’s enough to cause a nervous consumer’s blood pressure to jump like the price of lumber, which, by the way, was up 15.5 percent last month.
But don’t freak out — yet.
While economists are becoming more concerned about the potential for prolonged high inflation, many still expect the price spikes are a temporary result of surging consumer spending — fueled in part by government stimulus money — causing short-term bottlenecks in supply chains. There’s already evidence this is happening, with some commodity prices coming back … [ FULL ARTICLE ]