Maybe you've noticed that prices have risen ever since covid implications have dwindled downn? Inflation has always been an issue in the world of economics but as of late it's been steadily increasing, "Overall, prices in August climbed 5.3% year over year, according to the Bureau of Labor Statistics (BLS) and 0.3% over the past month. The indexes for gasoline, food, shelter, and home furniture were key drivers of inflation growth last month." (Tepper, 2021). The Federal Reserve's job is to keep price growth stable but in recent times especially after covid implications have dwindled down the market is still suffering from implications caused by the pandemic. Since the pandemic essentially shut a majority of operations down, now that they are trying to return to things before covid it has resulted in shortages and supplies being limited as a result of things going back to normal. The Federal Reserve has stated that this is to be expected however and that in due time prices will drop again as things become more adjusted, "The reasons for that hike are tied to the pandemic, to be sure. Supply is limited thanks to new car production being stymied by an ongoing chip shortage, people hanging onto their leases for longer and rental car companies—a major source of used cars—having fewer to unload after limiting their inventory when the pandemic struck. The Fed has warned the public over these and other supply-chain issues, too, saying that it’ll take time for sectors of the economy to get back to normal. Once these kinks are worked out, the Fed asserts, inflation will stop growing so quickly." (Tepper, 2021).
References:
Tepper, T. (2021, September 14). Why Is Inflation Rising Right Now? Forbes Advisor. https://www.forbes.com/advisor/investing/why-is-inflation-rising-right-now/