Why is our American inflation still so high?

Why is the inflation so high in the USA?
Everybody says it’s because of

1. Pandemic-related factors: Early in the COVID-19 pandemic, there were fewer workers and disruptions in the availability of goods due to supply chain issues and other pandemic-related factors. At the same time, demand for certain products soared as pandemic-era stimulus programs left consumers with extra cash to spend.

2. Rising housing costs: More recently, inflation has been driven mostly by the increasing cost of buying or renting a home. This is due to slow new homebuilding and fewer older Americans moving out of their homes as frequently.

3. Energy and commodity price shocks: The war in Ukraine and resulting sanctions on Russian oil imports have contributed to a rise in energy prices, including gasoline and electricity. Fluctuating consumer demand for gasoline has also played a role.

4. Tight labor market: As product market shocks have faded, a tight labor market and resulting persistence in nominal wage increases have become a main driver of ongoing inflation.

In summary, the combination of pandemic-related supply and demand imbalances, rising housing costs, energy and commodity price shocks, and a tight labor market have all contributed to the high inflation experienced in the US over the last 4 years.
But I say not! I say that 5here are 4 distinct reasons. Watch to learn more about it!

Sources
[1] What is inflation, and why has it been so high? - Brookings Institution https://www.brookings.edu/articles/what-is-inflation-and-why-has-it-been-so-high/
[2] In the U.S. and around the world, inflation is high and getting higher https://www.pewresearch.org/short-reads/2022/06/15/in-the-u-s-and-around-the-world-inflation-is-high-and-getting-higher/
[3] Why Is Inflation So High? An Economist Weighs In - CNBC https://www.cnbc.com/select/why-is-inflation-so-high/
[4] Stubbornly high US inflation grew stronger than expected in March https://edition.cnn.com/2024/04/10/economy/cpi-consumer-price-index-inflation-march/index.html
[5] Unpacking the Causes of Pandemic-Era Inflation in the US https://www.nber.org/digest/20239/unpacking-causes-pandemic-era-inflation-us

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