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Inflation Only Expected to Last Six Months

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.”