Inflation could hit 9% — and prices increases would have been 'partially avoidable' if the Fed had acted sooner, top economist Mohamed El-Erian says

According to El-Erian, US inflation may reach 9% and criticized the Federal Reserve for not acting sooner.

According to data released by the Bureau of Labor Statistics on Friday, US inflation rose to 8.6% in the year through May, the highest level in 41 years.

El-Erian told CBS's "Face the Nation" that he thinks people need to be very modest about what they know about inflation. I don't think it's going to get better. At this rate, we may get to 9%.

In April, price increases slowed for the first time in eight months, but El-Erian didn't think it was a good sign.

El-Erian is the President of Queens' College at Cambridge University. He was the leader of Pimco.

We end up in a recession when inflation goes to 9% and people worry that it will go to 10%. He said that it would be terrible if that happened.

El-Erian criticized the Fed for not responding to rising inflation earlier. He told CBS that it mischaracterized what inflation was.

He said that it was partly avoidable. This is going to have a lot of economic, social and political consequences. Had early actions been taken, most of it would not have happened.

At this week's rate-setting meeting, El-Erian expects the rate to increase by 50 basis points. The Fed has raised rates a couple of times.

El-Erian told CNBC that the Fed should not stop raising interest rates until inflation is under control.

El-Erian didn't reply immediately to Insider's request for comment.

The Fed isn't the only one that El-Erian criticizes. The former Fed chair told CNBC that the central bank made a mistake when it delayed its response to inflation.

In a congressional hearing in March, Powell admitted that the Fed should have acted sooner.

Powell said that they should have moved sooner. It is taking more time for the supply side to heal than we thought.