Opinion: Why we're predicting inflation will loom over 2022 and beyond

Timothy G. Nash and John Hantz

American economist Milton Friedman famously said inflation is always and everywhere a monetary phenomenon in the sense that it is — and can be produced only by — a monetary increase in the quantity of money relative to output.

The U.S. Bureau of Labor Statistics on Jan. 12 released the inflation data for December and all of 2021 in its comprehensive year-end U.S. report on inflation. By the end of December, the U.S. economy realized a 7% inflation rate for 2021 (a figure not seen in roughly 40 years) as measured by the Consumer Price Index. Also, the report notes that for the last three months of the year, inflation averaged 9.3%.