Bond investor billionaire Jeffrey GundlachAccording to Friday’s announcement, inflation of consumer prices will likely remain high through 2021 and exceed 4% by at least 2022.

CNBC was told by DoubleLine Capital that DoubleLine Capital head, David Levy, believes the current inflation is non-transitory. It will continue for the foreseeable future.

We believe it is almost certain that 2021 will see a 5-handle at the end. [consumer price index]Gundlach, CNBC’s host, stated, “It’s rising, and it will go higher in the following couple of readings.Halftime Report” “And, we don’t believe inflation will drop below 4% any time in 2022.”

These comments are in line with CPI. This measures the prices of a large range of consumer products. increasing at a 5.4% annual paceThe fastest pace in over 30 years when you include food and energy prices. This is the preferred indicator of personal consumption spending, measured by the Federal Reserve, but excluding energy and food. is at a 3.6% year over year paceThis is well in excess of the central banks 2% goal.

Fed officials insist that the current price increases are transitoryIn the context of the Covid-19 pandemic, this was driven by shocks to supply chains, an extraordinary demand for goods and services and a labor shortage.

Gundlach admitted that not all of these increases are temporary.

Shelter costs are one of his factors. These cost approximately one third of the CPI. However, they have not experienced the same rise as headlines.

His prediction was that inflation would continue to rise because of the increase in shelter and wages.

He said that the result has been negative real rates because government bond yields are low and inflation is high. From an investment perspective, the negative rates are “wickedly inattractive,” he stated.