Inflation is on the minds of many and there is no shortage of price increase anecdotes around the country. From commodities like iron ore and copper doubling in price, to paying MSRP for a year-old car, these observations of rising prices are coloring perceptions about general affordability, the dollar, the central bank and investments.
Whether we are experiencing inflation is not up for debate, however, the prospect of sustainable inflation is definitely debatable. Is it the ‘80s all over again? Can we objectively look at the pandemic-induced supply disruptions, a confluence of weather anomalies, lean manufacturing driven supply chain decisions and a Texas freeze, and call it a structural and sustainable inflation? Not really. At least, not yet.