Consumers and businesses struggling with inflation received some positive news, with one expert saying it will only last six months.
Recent months have seen the fastest-growing inflation rates in a decade, with prices soaring for common items and goods. Many families and businesses have been struggling to keep up with rising prices, with many wondering if/when prices will level out.
Former Federal Reserve Governor Randall Kroszner has weighed in, saying he believes the current inflation is largely the result of a perfect storm of circumstances, including pent-up demand, large savings people had built up, stimulus-fueled spending and supply bottlenecks, such as the semiconductor shortage.
Kroszner does not, however, believe the increased prices will be a sustained trend.
“We’re going to see a lot of price increases in the short-run,” Kroszner said in an interview with Bloomberg. ”The key question is: Are those transitory or are those sustained? I think we’re going to see them transitory for a while. I don’t think they’re necessarily going to be sustained over the year-to-two-year horizon. But over a six-month horizon? I think certainly.”