Dollar s Purchasing Power Drops to Lowest Ever. Inflation Heats Up, as Fed Wants, After Simultaneous Supply Shock & Demand Shock | Wolf Street

A supply shock and a demand shock came together during the Pandemic, and it produced chaos in the pricing environment. There was a sudden collapse in demand in some segments of the economy restaurants, gasoline, jet fuel, for example and a surge in demand in other segments, such as eating at home, and anything to do with ecommerce, including transportation services focused on it.

These shifts came together with supply-chain interruptions and supply chains that were unprepared for the big shifts, leading to shortages in some parts of the economy the supply shock. There were empty shelves in stores, while product was piling up with no buyers in other parts of the economy.

via wolfstreet.com