Surging inflation may last until 2022 and likely won’t dip until late 2022, Federal Reserve Chairman Jerome Powell said Wednesday.

  • Inflation prices are on the rise due to supply chain issues, and those prices might last for another year, Powell said, per Fox Business.
  • But the wild consumer prices might shift once the supply chain issues are solved, he said.
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Powell said current inflation prices — which are the highest in 30 years — are due to supply chain issues and pandemic shortages, not wage issues.

  • “Our baseline expectation is that supply bottlenecks and shortages will persist well into next year and elevated inflation as well,” Powell said, per Fox Business. “And that, as the pandemic subsides, supply chain bottlenecks will abate and job growth will move back up. And as that happens, inflation will decline from today’s elevated levels.” 

Of course, the inflation issue isn’t a problem for just the United States. The United Nations Food and Agricultural Agency said global food prices have hit a 10-year high, per Al Jazeera.

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That might not slow soon as wheat prices have soared ahead of the winter, which could signal more food inflation, per The Wall Street Journal.

  • These high prices “are felt by everyone, but are especially hard on poorer households that need to shell out a larger share of their income to keep themselves and their families fed,” according to Al Jazeera.