The recent rise in headline inflation following surges in food and energy prices has prompted concerns that high inflation could persist. However, sustained high inflation is unlikely as long as inflation expectations remain well anchored. With low pass-through of commodity prices to consumer prices and well-anchored inflation expectations, core inflation is likely to remain low and stable, and headline inflation is likely to fall to the levels of core inflation as the effects of commodity price increases dissipate.Also recall this post.
UPDATE (04.08.): If you are still unconvinced (yeah, I mean you Mr. ls), you may want to check Paul Krugman's viewpoint here and, most recently, here.
