The ongoing inflation spike proves that the economic recovery is either gaining strength or flying off the rails, depending on whom you ask.

BlackRock (BLK) CEO Larry Fink on Wednesday warned that investors are in for a "big shock" as prices rise. That ominous prediction came days after President Joe Biden said "we all benefit" from the uptick in U.S. wages that some consider a key driver of rising inflation.

In a new interview, billionaire Todd Boehly — co-founder and CEO of holding company Eldridge — said he welcomes the surge in wages as a means of addressing income inequality. Downplaying the threat posed by inflation, Boehly predicted that price hikes would stay confined to sectors where workers are likely to receive higher pay, such as restaurants and hotels.

"Labor costs are going to go up, period," he says "And I think they should."

"I think that for this whole partnership that we're all in together as the U.S.," he adds. "There should be more balance between what people are getting paid. And ultimately, I think, we're working on figuring out that balance."

"You'd have a situation where there's going to be wage inflation, because $30,000 a year is not enough to live on," he says.

Many observers attribute rising inflation to loose monetary policy that has kept interest rates near zero since the pandemic hit the U.S. last March, as well as generous fiscal policy that has pumped trillions into the economy.

Plus, a chip shortage has sent auto prices soaring and the reopening of the economy has prompted a surge in spending on activities like dining out and traveling, lifting prices in those segments of the economy.

Despite the increased demand, millions of unemployed remain reluctant to get back to work, causing a labor shortage as businesses reopen from the COVID-19 pandemic. In turn, a slew of major companies — including McDonald's (MCD) and Amazon (AMZN) — have raised their wages to woo workers back.

Increased wages could push prices higher, since employers will pass along costs to consumers, Boehly said.

"When you start to think about inflation, I think it's going to be attached to the physical world where there's labor attached to the end product, and that's going to be marked up," he says. "Ultimately, that will then cycle through in terms of the costs."

"So I think we're going to be paying more for hotels and more for food and more for restaurants, which, frankly, we should," he adds.

The Personal Consumption Expenditures (PCE) Index, a measure of inflation tallied by The Bureau of Economic, jumped 3.6% in April, its highest level in more than a decade, according to data released last week. That index rose 2.3% in March, after inching up just 1.5% in February.

Some economists, like former Treasury Secretary Larry Summers, warn that the hot economy is ripe for ongoing inflation that could spread beyond the reopening sectors and undermine the economic recovery.

The Biden administration is closely monitoring inflationary pressures but so far has determined that the trend will be temporary, The New York Times reported last month. Similarly, Federal Reserve officials have reiterated their support for loose monetary policy and downplayed the threat of inflation — at least for now.

Speaking to Yahoo Finance, Boehly predicted that inflation will remain limited to sectors that depend on in-person workers set to receive a wage hike as they return to work. But prices will not rise in sectors of the economy distant from the job losses caused by the pandemic, he said.

"When you look at the total market and you look across," he says. "Does that mean that your tech platforms are going to start charging you more now? Does that mean that your banking platforms are going to start charging you more? No."

"I just think we need more people back working," he says. "So therefore, I think those types of costs are going to go up higher."

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