Nov CPI data shows 6.8% inflation, highest in 40 years

[Amishman]

4. I do not think prices will fall significantly, the money supply has grown too much

We are now also seeing changes in spending and investing habits that will increase the velocity of money, compounding the inflationary pressure of the added supply.

I think more likely the rate of price increases will level off as the market adjusts to the new level of currency in circulation.

The current supply chain issues is in two parts - we have supply shortages due to pandemic disruptions, but we also have high demand for goods and services because of additional money in circulation. Simply expecting prices to fall as supply catches up ignores the demand driven upward pressure. Increasing labor costs due to wages and short staffing will also make prices more likely to stick at current (or higher) levels.