"We are seeing very substantial inflation," Buffett said. "We are raising prices. People are raising prices to us and it's being accepted."
U.S. Treasury Secretary Janet Yellen said on Tuesday that she does not anticipate that inflation will be a problem for the U.S. economy, as price increases during the recovery should be transitory.
Many signs of inflation are already here in the United States - with the prices of groceries, household items, gas and electricity, for example, all surging over the last year.