Gas prices can be seen after U.S. consumer prices hit April 2 in Beverly Hills, Calif.
Lucy Nicholson | Reuters
Higher inflation will remain, according to veteran investment strategist David Roche, who called the “highly unlikely” view that higher prices were temporary.
Speaking to CNBC Pro Talks on Wednesday, Roche – who correctly forecast the fall of the Soviet bloc, the fall of the Berlin Wall, and the global financial crisis of 2008 – contradicted economists who believe the current surge in inflation is temporary.
It comes as markets eagerly await Thursday’s May US consumer price index to assess the magnitude and duration of the spike in inflation and the likelihood that the US Federal Reserve will have to begin talks about tapering its monetary stimulus package.
That’s why Roche, President and global strategist at Independent Strategy, believes higher inflation is a longer-term phenomenon.