The Last Post: It seems that the temporary rise in inflation is likely to become permanent

Rising inflation is here to stay – which means supply-chain issues, spiralling utility prices and demands for higher wages are also not going anywhere

Renault has warned that its production at plants such as this one in Moscow, Russia will be hit far harder by the industry’s chip shortage than it had predicted only two months ago. Picture: Andrey Rudakov/Bloomberg

The reassuring economic consensus of recent months that rising inflation is a temporary phenomenon is fast disappearing. We were told that temporary supply-chain issues due to post-Covid-19 reopenings would soon be solved, and all of the things in short supply would soon be available to meet consumer demand.

It now doesn’t look like that will happen, if it ever really did. By this stage we are all aware of the glitches in global supply chains ...