Nevertheless, there is some uncertainty

"The supply shortages turned out to be more long-lasting than most central bankers wanted to make us believe," said Markus Brunnermeier, professor of economics at Princeton University.

Why so important?

The surge in inflation is important for central bankers as most are mandated to keep it low to protect their economies from galloping prices which erode purchasing power.

If it is no longer seen as temporary, central bankers will likely withdraw economic stimulus and raise interest rates.

Some countries such as Mexico, Brazil and Russia have already begun to raise rates to try to get a handle on inflation.

But a quick withdrawal of stimulus support and interest rate hikes from the US Fed is the biggest threat, as even its prospect could roil the markets as it did in 2013 and raise borrowing costs for many developing countries.

Such moves could snuff out the global economic recovery.