Richmond Fed President Thomas Barkin told CNBC yesterday, “we will see price pressure this year”, with a “very strong demand situation” and “constraints in supply”. “When those things happen, you’re definitely going to see price pressure,” he added.
“Inflation is a recurring phenomenon. Prices go up this year, prices go up next year,” he said. “I think it’s fair to argue the question of whether the combination of supply chain constraints and stimulus-driven price increases actually revert next year.”