News & Insights

Inflation is Becoming Persistent

CPI Growth Making Multi-decade Highs

The Consumer Price Index (CPI) increased 7 percent year-over-year as the effects of last year’s stimulus continues to run off and supply chain disruptions continue. As the surge in the COVID-19 omicron variant reinstitutes restrictions on movement and causes labor shortages globally, an already stretched supply chain is being tested further. Before the latest wave hit, forecasts for ”normalization” of the supply chain were being pushed late into 2022. With these latest challenges, this now looks more likely to happen in 2023. Coupled with the hefty rent increases now making their way into more Americans’ leases, this seems likely to keep CPI growth elevated well above the Fed’s target of 2 percent for much of 2022.