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MNI BRIEF: SF Fed: Inflation Unlikely to Persist After Dec

(MNI) WASHINGTON
(MNI)

The recent U.S. spike in inflation is unlikely to persist beyond this year, according to a new San Francisco Fed blog post Friday, noting that price increases in health-care services, used vehicles and other "Covid-sensitive" products should be temporary.

Economist Adam Shapiro also noted a risk that recent gains could end up "raising longer-run inflation expectations among businesses, altering current and future price-setting behavior." MNI has reported the Fed's downplaying of faster inflation may send price expectations lurching higher than policymakers want.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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