Obama Economic Advisor Larry Summers ‘Elementary Fallacy’ that All Inflation Is ‘Transient’

EXCERPT:

SUMMERS: "Look, David, we have transient inflation. Annual inflation in the last month, according to the Core CPI, was above 10 percent. Majority of that is surely transient. We've got used car prices, we've got other examples that people cite that are clearly transient, but it is elementary fallacy to confuse the idea that we have some transient inflation with the false proposition that all the inflation is transient, and we have nothing to be concerned about. If you look at things that are a longer lasting, labor shortages, pervasive. If you look at things like the largest component of the Cost-of-Living Index, housing, housing is on fire. As you know, as your listeners know, the majority of houses are selling above their asking prices in many parts of the country. Housing inflation has been close to 20 percent, the vast majority of which has not yet shown up in any index.”