Insider Q&A: Economist Joel Naroff on the inflation threat

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Inflation, a no-show for decades, is suddenly breaking out all over, it seems. And concerns are growing.

Consumer prices in April jumped by the largest amount in more than a decade, with surging costs for food, used cars, airline ติดตั้ง slotxo tickets and furniture, among other goods and services. The price increases have sparked fears that the quickening economic recovery could trigger runaway inflation for the first time in a generation.

The Associated Press spoke recently with Joel Naroff, president and chief economist of Naroff Economics LLC. The interview was edited for clarity and length.

Q: After many years of low inflation, are you seeing signs that inflation is rising?

A: There is no question that inflation pressures are building, and they are building fairly sharply. We have had a massive intervention in the economy by the U.S. government. That has caused a snapback in demand at the same time that global supply chains are having problems.

Q: Chairman Jerome Powell and other Fed officials are arguing that the price increases are transitory and not an indication that inflation will become a problem. What do you think?

A: I think we have a greater risk that this will be an extended period of inflation rather than a transitory period. The Fed is expecting the risk to fade as the government support winds down. But if President Joe Biden's infrastructure and family programs are passed, the Fed could be in trouble.