Warren Buffett, the “god of stocks,” said at his Berkshire Hathaway shareholder meeting that he sees inflation in many businesses as the economic recovery accelerates.
Buffett, who is chairman and chief executive officer of Berkshire, said, “We’re seeing very significant inflation. It’s interesting. We’re raising prices, others are raising prices on us, and it’s all being accepted.”
The billionaire investor added, “We have nine home builders in addition to the largest prefabricated home business in the country. So we build a lot of houses, and the cost keeps going up, up, up. Steel prices, as you know, are climbing higher every day.”
Pocahontas is owned by Clayton Homes, one of the nation’s largest homebuilders, as well as Benjamin Moore Painting and Shaw Flooring, among others.
Inflation has recently begun to accelerate for a number of reasons, including increased demand and problems in parts of the supply chain. The kernel personal consumption expenditure price index, which excludes volatile food and energy prices, rose 1.8% in March, the largest increase since February 2020, while the overall consumer price index increased 2.3%, the fastest rate of growth since 2018.
U.S. Federal Reserve Chairman Ball reiterated last week that he expects inflation to rise temporarily before falling back to near the 2% target set by the central bank. The Fed resolved not to raise rates until it sees full employment as long as inflation does not exceed the target by too much.
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