The forecast
More than three out of four (77%) economic forecasters believe the highest inflation in four decades is either fueling a wage-price spiral or poses a “major risk” of doing so this year, the National Association for Business Economics (NABE) said Monday in its release of survey results.
Rising wages, supply chain bottlenecks and shortages of materials prompted more than half of the forecasters to warn of “upside risks for inflation” in 2022, the NABE said. The week-long survey of 57 forecasters ended Feb. 15, several days before the start of Russia’s invasion of Ukraine pushed up prices for oil and other commodities worldwide.
The forecasters “see a risk that inflation will remain higher than previously expected over the next three years, coming largely from the labor market,” according to David Altig, research director at the Federal Reserve Bank of Atlanta and NABE president.
https://www.cfodive.com/news/forecasters-see-major-risk-wage-price-spiral/619543/
Who are the winners and losers from inflation?
Inflation is a continuous rise in the price level. Inflation means the value of money will fall and purchase relatively fewer goods than previously.
In summary:
• Inflation will hurt those who keep cash savings and workers with fixed wages.
https://www.economicshelp.org/blog/145181/inflation/who-are-the-winners-and-losers-from-inflation/
• Inflation will benefit those with large debts who, with rising prices, find it easier to pay back their debts
Bottomline
Those with fixed assets and fixed-rate debt are the winners unless of course the entire economy fails and we fall into social chaos. But keep 2007 in mind, and do not overpay, lest you end up like so many did in 2008
