Billionaire Bond Investor Jeffrey Gundraf On Friday, he said consumer price inflation remained rising until 2021 and is likely to remain above 4% until at least 2022.
The head of DoubleLine Capital told CNBC that current inflation is not temporary and is likely to persist in the future, citing pressure from rising shelter costs and wages.
“We believe it is almost certain that 2021 will end with five handles. [consumer price index], And it’s getting higher in the next few readings, mainly due to the price of energy, “Gandrach said on CNBC.Half-time report“And I don’t think inflation will fall below 4% in 2022.”
His comments are attached to the CPI, which measures a wide basket of consumer goods prices. Increasing at a pace of 5.4% per year Including food and energy costs, it’s the fastest in 30 years. Federal Reserve Priority Gauge, which measures consumer spending excluding food and energy, 3.6% year-on-year pace, Far above the central bank’s 2% target.
Federal Reserve Board Claim that the current price increase is temporary Supply chain shocks, unusual demand for goods rather than services, and labor shortages are all related to the Covid-19 pandemic.
Gundlach acknowledges that some increases, such as timber and other commodities, are temporary, but others are not.
One of the factors he cited is shelter costs, which account for about one-third of the CPI, which is not at a pace comparable to the surge in headlines, but is steadily rising this year.
“It’s almost certain that we’ll get sustained high inflation, thanks to rising shelter components and perhaps higher wages,” he said.
As a result, real interest rates are negative, as inflation remains high while government bond yields remain low, he said. He called negative interest rates “terribly unattractive” from an investment perspective.
Inflation will exceed 4% by 2022, Jeffrey Gundraf says
Source link Inflation will exceed 4% by 2022, Jeffrey Gundraf says