In dealing with inflation, we are dealing with what the ancient Greeks called the Hydra multi-headed monster. It is difficult to tame inflation, because the inflation process, like that monster, is complex, reflecting multiple shocks hitting the economy.
As Fed Chair, Jerome Powell, recently stated “we now understand better how little we understand about inflation.” I believe that the succession of ever-increasing inflation numbers is shortly coming to an end. A steady deceleration is about to begin. Among other things, my view is based on an assumed moderation in energy and commodity price increases and a gradual easing of the supply bottlenecks.