Economist calls for calm on inflation talk: ‘Everything ultimately will settle down’

Oh dear that pretty much guarantee's that inflation is here and here to stay. "Economists" are consistently very wrong.

Inflation was hot before Covid. It was just the fact that it was well hidden using hedonic quality adjustment and being mostly mopped up by big ticket assets (homes, cars, luxury items). Therefore, considering inflation experienced on the street is entirely sentiment based (if you refuse to pay more than 50p for a banana, just because, then inflation is contained).... now consider that not only are suppliers and retailers passing on costs and marking up prices, but retail punters are more than happy to pay up thanks to Covid savings and general lack of risk aversion (thanks to government intervention).

Short version: Inflation was already here and now, thanks to Covid and government intervention, it's properly here in a big way. Policy makers will be at least 12 months behind it.

Watch this space and don't be fooled!

Well said. Look at the savings rates of just about every major US bank - Chase, Wells Fargo, BofA etc. Even their CDs (not to mention savings accounts) earn literally NOTHING, regardless of the balance.

Hey, "economists" - pop quiz for y'all: what do you think happens when the message banks are sending is "Don't bring your money here, spend like there's no tomorrow"?