Inflation: short-term spike or longer-term trend?

I thought it would be interesting to get people’s views on inflation, particularly the question of whether the increase will be relatively transitionary or sustained as in previous decades.

A rise seems somewhat inevitable given government spending to counter the pandemic and it is already apparent from some commodity prices, but do you think it will be:

  • Modest and temporary,
  • Modest and sustained, or
  • Spiralling and sustained?

0 voters

maybe add more options, modest and sustained :grin: (at least we’re hoping for that)

Your wish is my command. Happy cake day by the way!

For anyone interested in the topic, this article was what got me thinking:

Inflation is a funny one really, apparently J Powell is relaxed despite the price of everything going up on America.

Also in the UK I believe the government would say it’s stable or low. However I am noticing stuff generally going up.

This Powell needs to stop playing so chill.

Better for markets if its a slow and steady: little signs of policy change from FED instead of sudden hikes when its getting out of control later down the road

Markets already quite jittery

Sharp and temporary (until the rebound from the lockdown ends and interest rates change)