The current surge in inflation is predicted to be transitory, with moderately higher inflation by 2023 than was seen during the past decade forecasts a new study out of the UCLA Anderson School of Management. "Although the data do not seem to support a sustained surge in inflation, it's a risk worth monitoring, noted UCLA Anderson Senior Economist Leo Feler

The report also predicts a relatively rapid return of homebuilding through the coming two years due to the continued demand for a limited housing stock coupled with low interest rates. The study looks for home price appreciation to continue this year at 11.9%, with the increase in home prices abating to 7.5% in 2022 and 4.6% in 2023.

In an overall outlook for the economy nationally and in California, the study said robust growth still remains on track for 2021 as was predicted by the academicians in March but cautioned economic recoveries are never smooth. Moderately high inflation can be expected in the short term, said the experts with housing and services driving the recovery and employment levels recovering to previous peaks over the coming year.