The fed reckons the inflation spike is just transitionary but there is growing opinion that the fed could be wrong.
There is a reason they call it spiraling inflation and why higher interest rates and a recession is needed to break the cycle.
When the CPI goes up, welfare benefits and wages go up too. The unions will also want the 4% inflation they missed out on plus 4% pa going forward all factored in. So how does the employer pay for this? He puts up the prices of his goods and the process repeats.
