Bank Of America Says Brace For Up To Four Years Of Rising Inflation

The core personal consumption expenditures (PCE) price index, excluding volatile food and energy, is seen back to 1965. It is the Fed's preferred measure of inflation  

Daily Mail: America is warned to brace for up to four YEARS of rising inflation - as Fed's preferred inflation measure posts biggest annual increase since 1992 

* Bank of America report speculates high inflation could last two to four years 

* Contradicts Fed Chair Jerome Powell's insistence soaring prices are transitory

* On Friday, government released new inflation data from PCE Price Index 

* Core PCE Index rose 3.4% on the year in May, the quickest rise since 1992 

A new Bank of America report predicts consumer prices will continue to soar for up to four years, as the Federal Reserve's preferred measure of inflation hits its highest level in three decades. 

In a note on Friday, BofA's top strategist Michael Hartnett predicted inflation will remain in the 2-4 percent range over the next two to four years. 

U.S. inflation has averaged 3 percent in the past 100 years, 2 percent in the 2010s, and 1 percent in 2020, but will annualize at 8 percent in 2021, Bofa predicted in the note. 

It was 'fascinating so many deem inflation as transitory when stimulus, economic growth, asset/commodity/housing inflations (are) deemed permanent,' Hartnett wrote.  

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Update: U.S. inflation likely to remain elevated for up to four years - BofA (Reuters)  

WNU Editor: I live in Canada and the Bank of Canada (our Federal Reserve) is saying the same thing. Inflation is transitory and it will be below 4%. But what I see in the stores and what I buy is telling me a different story. That the real inflation rate is easily 10% if not more.