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Supply Chain Disruptions: The pandemic caused global bottlenecks in shipping and manufacturing, creating shortages of goods like autos and electronics while demand rebounded.
Energy Shocks: Russia’s 2022 invasion of Ukraine drove up global oil and gas prices, significantly impacting gasoline and food costs.
Fiscal Stimulus: The $1.9 trillion ARPA and prior pandemic relief measures injected trillions into the economy. Estimates suggest this added 1–2 percentage points to inflation, though some analyses argue it explains a larger share of core inflation.
Labor Market Tightness: Post-pandemic worker shortages and high job vacancies pushed wages and service prices higher. (DEMOCRATS paying people more money on unemployment than they could make working)