In addition, energy prices have moved up noticeably in recent months, and market conditions suggest risk of further increases. As I said earlier, I still see supply and demand working here to moderate price increases so that inflation moves back toward 2 percent. But I also see some upside pressures on inflation that bear watching.
Bottlenecks have been worse and are lasting longer than I and most forecasters expected, and an important question that no one knows the answer to is how long these supply problems will persist.