New car prices are also up 5.3% over the last year, hitting record levels.

Some experts agree with the Fed's take that inflation pressures will start easing in the second half of this year.

"The headline inflation numbers have been eye-popping in recent months, but underlying inflation remains under control," said Gus Faucher, chief economist at PNC Financial.

He noted prices few areas like used and rental cars, airfares and hotels are skyrocketing, and that "once again, comparisons with weak prices a year earlier are overstating inflation. Both factors will wash out of the data in the near term."

But not all economists are convinced the pandemic-fueled effect on inflation will be short-lived.

Sung Won Sohn, economics professor at Marymount University, said "the inflation picture looks less and less transitory," adding that "the supply bottlenecks, a surge in demand and the base effect explain some of the increases, but it is difficult to argue that everything will be back to normal in a few months."

For example, he pointed to labor shortages that he believes are likely to lead to increased wages.

"No doubt these higher labor costs will be reflected in higher prices in the future," he said.

Beyond economists, average Americans are becoming more concerned about prices too.

A survey of consumers by the Federal Reserve found that consumers expect about this level of inflation — a 4.8% annual increase — to last for at least the next year. That's the highest level since the Fed started the survey in 2013.