Not-So-Great Moments in Inflation History

Prices can rise for any number of reasons. Non-monetary events like supply-chain disruptions, or a spike in demand for a hot product or service — or a government regulation that creates scarcity — can all push up prices. The “good” news (if you can call it that) is that the reasons for such price hikes are generally fairly obvious. You’ll see media reports, for example, about labor or trucker shortages that may be driving the higher prices. These events tend to be temporary. Sooner or later, those supply chain disruptions will come to an end. Even government constraints that may be pushing up prices — for instance, like rent controls — can be lifted. When the laws are repealed, the shortages will disappear. Prices eventually come down.