Expert Says US inflation Is Likely To Be 'Far Stickier And Longer Lasting' As CPI Data Announced

On CNBC, Bill Smead of Smead Capital Management said inflation will be "far stickier and longer lasting" than many expect in the U.S.

He pointed out that there are 92 million people between the age of 22 and 42 years, and they are going to spend their money on necessities over the next ten years, whether the stock markets are good or bad. "They are going to live their life," Smead said. He added that many in that age group don’t own any stocks.

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Smead also stated that the economy should be very good and the U.S. Federal Reserve is going to have a "hard time controlling inflation."

The Labor Department reported Tuesday that the consumer price index rose 0.5% in January, an annual gain of 6.4%. Economists surveyed by Dow Jones had been expecting increases of 0.4% and 6.2%.

Price Action: SPDR S&P 500 ETF Trust SPY gained 1.18% to $412.83 on Monday.

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