GM’s chief economist says U.S. inflation problems will improve

General Motors’ chief economist said Thursday that she believes the country’s inflation problems are only temporary and mostly the result of supply-chain bottlenecks — not last year’s stimulus checks — and that they will likely ease up later in the year.

Speaking at a virtual meeting of the Detroit Economic Club, Elaine Buckberg said that year-over-year inflation is “extremely high” right now and “it’s the biggest cloud on the horizon” for the economy. 

However, she thinks inflation is poised to let up — so long as employers don’t continually raise wages in response to higher prices and bring on a feedback loop.

She noted how month-to-month inflation numbers aren’t surging, and said the supply of computer chips needed for vehicle production — a major reason for higher prices for new and even used vehicles — is getting better for GM.