Economists thought inflation would be around 2.5% right now. Instead, it’s over 6%

Even by the forgiving standards of economic forecasting, that’s a miss of epic proportions

Explanations come in two schools. The demand school blames President Biden and the Federal Reserve for administering too much stimulus.

The supply school blames pandemic-related bottlenecks and supply chains.

This inflation was made possible only by strong demand interacting with restricted supply.

Greg Ip WSJ Dec. 8, 2021

https://www.wsj.com/articles/this-inflation-defies-the-old-models-11638978991