Here are just a few reasons the 5%+ inflation we’re seeing now is highly likely to persist:

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by chateaucelebration

1) The monetary stimulus (read: money printing) happening this time is now making its way to consumer pockets instead of just sitting in assets because of increased fiscal stimulus (expanded entitlement state + govt spending)

2) The recent monetary stimulus has driven huge increases in housing prices, which is only beginning filter to rent prices

3) Globalization was a critical deflationary force in last 3 decades – that is now reversing and will therefore be an inflationary force (mainly do labor getting more negotiating power)

4) The US government cannot raise rates to put the brakes on nominal economic growth because Debt/GDP is too high (raise rates = runaway debt crisis), so a historical method of slowing inflation is less likely to occur

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5) Energy has seen huge underinvestment because of virtue signaling, which will drive above-trend price hikes for years (energy demand is growing much faster than supply)

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