Consumer prices are rising. Here's what's increasing the most — and why

Americans' wallets are on fire. With consumer prices last month rising at the fastest rate in nearly 13 years, some policymakers are worried that the hyperinflation of the 1970s is around the corner.

But there's little chance of that, most economists say. To be sure, today's price hikes are real: The cost of everything from lumber to food to airfares is climbing, while factories report shortages of both materials and workers. But many, if not all, experts say those increases are likely to be temporary, reflecting the economy's rapid reopening as the pandemic wanes rather than long-term supply issues. "[T]he current rise in inflation will prove to be transitory," Societe Generale analyst Albert Edwards wrote Thursday in a report titled "Don't panic - just yet!" He added, "Investor worries about higher inflation will evaporate."