So, are we surprised that there is inflation?
Lets see: we are in the midst of a pandemic. So far, 920,000 Americans have died, and more having long-haul symptoms.
Many workers have quit their jobs; some to get better jobs with better wages, others because the death of a spouse left them as the only caregiver for their children.
Wages have gone up as a consequence. Fast food places have been upping their wages from the minimum wage of $7.50 to as much as $15.00. Your hamburger is costing more.
Speaking of hamburger, the virus tore through slaughter-houses, causing plants to shut down, hence resulting in less meat available to purchase. Less meat equals higher prices.
Vegetables and fruits are also up, due to a shortage of workers.
We all know about the problem with the supply chain: we certainly had threads about the number of ships waiting outside harbors waiting for a slot to unload the goods. Once on shore, the problem persisted, due to the number of truckers whom either died, got sick, or retired.
Today's automobile rely on computer chips. We all know about the chip shortage, in part due to China having to shut down factories due to the virus. New car prices are up, as are used cars.
Housing continues to go up, as people living in apartments (and so at increased risk of exposure to the virus) desire to move to a house.
Oil prices continue to climb. As one that receives royalty checks, that is good. But I would rather see the prices fall and have slimmer checks.
Some good news: Biden and the Democrats helped out by the stimulus checks, which no doubt many Trump supporters received and cashed. Every Republican voted against this help. Every since one.
See:
https://www.businessinsider.com/stim...package-2021-3
Plus, during Biden's first year, some 6.6 million jobs were created, a record. Of course, I realize that many of these people being counted were simply going back to work after having been laid off, but still...
Also, bankruptcies are down, including farm:
https://www.fb.org/market-intel/farm...ically-in-2021
see also for individuals and businesses:
https://www.uscourts.gov/news/2021/1...e-fall-sharply
Regardless, we all know that prices are going up. That Biden and the Democrats will be blamed is simply par for the course. They have the power.
However, I doubt this will be an inflationary cycle like the one I lived through during the 1970s. We simply have dollars chasing scarce products, which causes the prices to go up. When the supply chain and worker shortage gets back to normal, prices will go back down, although not to the pre-pandemic level.
When will this inflationary spurt end? Perhaps this summer, before the mid-terms, perhaps next year, or the year after. No one knows.