On that score, I continue to believe that the escalation of inflation will be transitory and that inflation will move 2/6  BIS central bankers' speeches  back toward our 2 percent target next year. That said, I am still greatly concerned about the upside risk that elevated inflation will not prove temporary. We have seen substantial increases in many prices.
Lumber prices skyrocketed through May but have largely retraced that increase in the past few months. Prices for used cars rose substantially from mid-2020 to mid-2021 but now seem to have stabilized at this higher level. At present, I am closely watching prices for housing services (rent and owners’ equivalent rent), which saw modest increases last year but have picked up recently.