"I actually think rates are probably going to go higher than 5% ... there's a lot of underlying inflation, which won't go away so quick," Dimon said.

U.S. Federal Reserve officials in December predicted that the rate, currently in the 4.25%-4.50% range, would rise to just over 5% by the end of 2023 and likely remain there for some time.

Policymakers at the central bank have said they will continue to push with interest rate hikes to get inflation firmly under control even as the economy shows signs of a slowdown.

U.S. consumer prices fell for the first time in more than two-and-a-half years in December, adding to hopes that inflation is now on a downward trend.

However, Dimon said the recent easing of inflation was coming from temporary factors such as a pullback in oil prices and a slowdown in China due to the pandemic, according to the report.

(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)