Hyperinflation coming soon?

Twitter co-founder Jack Dorsey has warned that hyperinflation is coming.

“It will happen in the US soon, and so the world,” he tweeted on Friday.

While Dorsey's forecast for hyperinflation is an outlier, the expectation for high inflation to be somewhat persistent has become more common.

DoubleLine Capital head Jeffrey Gundlach said that “2021 will end with a 5-handle” on the consumer price index and “we don’t think inflation is going below 4% anytime in 2022”.

Meanwhile, in the UK, the Bank of England's top economist Huw Pill said that the country could “see an inflation print close to or above 5%” in the months ahead.

Capital Economics analysts wrote last week that “we now think temporary shortages will restrain GDP for longer and boost inflation by more than we previously thought”.