Tuesday, January 25, 2022
A lot has been said about pandemic-induced supply issues being the reason for inflation, but there is also a huge demand influence as well. Demand for durable goods ran well above trends during the pandemic, driven by government support and people being unable to spend on services like travel and entertainment. That helped fuel inflation. With government support abating, and the service-side of economies opening up, demand for durable goods is waning.