Reuters Inflation in the United States is likely to continue elevated for up to four years, according to BofABofA, despite a growing belief that it is temporary, and only a financial market disaster would prevent central banks from tightening policy in the next six months. In a note published on Friday, the investment bank’s senior analyst Michael Hartnett said it was “fascinating” that “so many regard inflation as temporary” but “stimulus, economic growth, asset/commodity/housing inflations (are) deemed permanent.” Inflation in the United States has averaged 3% over the last 100 years, 2% in the 2010s, and 1% in 2020, but it has been annualizing at 8% so far in 2021, according to Bofa.
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