Prices have been on the rise this summer. While no one likes higher bills, most economists believe it's temporary, and they started to slow in July.
"Everything it seems is now pointing towards the Fed tapering its asset purchases in the coming months," a senior market analyst said.
"The Fed is late. It should have started tapering already," El-Erian told CNBC on Monday. "They are going to be very dovish for very long."
"The whole notion of transitory becomes meaningless at this point," Mohamed El-Erian told CNBC in an interview on Monday.
Lumber prices have fallen more than 43% since May's record high. The Fed chair said used car prices may follow suit.
Once bitcoin breaks through $38,000, it may signal an upward trend toward its medium-term average of around $47,000, an expert said.
Rising rent prices might lead inflation to normalize above the Fed's 2% target, Morgan Stanley said. That could pose a problem for the central bank.
When Americans expect to pay more, businesses can lift prices and workers can demand higher wages, so inflation expectations can drive inflation.
The US has a "workforce shortage and we have raising inflation, both directly related to this recent bill that just passed," McConnell said.
The comments contrast with the Federal Reserve's outlook, which sees rates near zero through 2023 amid "transitory" bouts of stronger inflation.
"I think what the Fed should do is follow what the Bank of Canada did last week, start tapping the breaks slowly," El-Erian told CNBC Monday.
Government data shows the first three months of 2021 were the best for wage growth in 20 years, but at the same time, the racial wage gap widened.
The PCE price index - a popular gauge of inflation - rose to 3.5% from 1.7% in the first quarter. Fed Chair Powell still insists this is "transitory."
Inflation strengthened in recent weeks, the central bank said, but the uptick is consistent with the "transitory" rise long anticipated by Fed officials.
White House and Treasury officials have been gaming out inflation risk scenarios and finding only a "transitory" increase, the NYT reports.
Fed Chair Jerome Powell has said that, although reopening is expected to drive a sharp jump in inflation, the surge will likely be "transitory."
Inflation is, in part, driven by expectations, as fears of higher prices lead workers to demand higher wages and businesses to lift their prices.