Supply chain bottlenecks and surging demand have been the primary drivers of inflation. Wholesale prices have increased at a record pace this past November, according to the Labor Department, indicating the inflation pressures in the post-covid economy are persisting. Consumer pricing is increasing at its fastest pace in nearly 40 years, with the demand for goods being the biggest driving force behind producer price increases as the world struggles to catch up with their supply and demand. Federal Reserve officials have been insisting that inflation is “transitory” and closely associated with pandemic-related factors that would eventually become irrelevant. However, Chairman Jerome Powell, along with other officials, has recanted their initial statement about current inflation being “transitory”. A recent article published by CNBC breaks down the numbers in greater detail.
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