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Economists warn inflation may still get worse

Randy Mancini 5 Jun 12
NEW YORK, NY - APRIL 29: Mohamed El-Erian, Chief Economic Adviser of Allianz appears on a segment of "Mornings With Maria" with Maria Bartiromo on the FOX Business Network at FOX Studios on April 29, 2016 in New York City. (Photo by Rob Kim/Getty Images)

NEW YORK, NY – APRIL 29: Mohamed El-Erian, Chief Economic Adviser of Allianz appears on a segment of “Mornings With Maria” with Maria Bartiromo on the FOX Business Network at FOX Studios on April 29, 2016 in New York City. (Photo by Rob Kim/Getty Images)

Economist Mohamed El-Erian said inflation has yet to reach it’s peak. Appearing on CBS’s “Face The Nation” Sunday, the Allianz Chief Economic Advisor said he fears inflation may reach nine percent.

“We got here because we got a combination of things happening,” said El-Erian. “All these things came together and are now feeding this inflation. The price of nearly everything is going up and making us feel really insecure.”

This comes after inflation hit 8.6 percent in May, the highest since December of 1981. El-Erian said their was hope it would be temporary and inflation was partially avoidable, but argued the federal reserve mischaracterized the issue and fell behind.

More US data disappointments today:Consumer sentiment, per the University of Michigan’s measure, fell by 8 points — more than expected and to its lowest level since the index started in 1952.

Also worrisome, long-term #inflation expectations rose to 3.3%, the highest since 2008