Supply Chain Disruptions, Not Stimulus, Drove Temporary Inflation Spike
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Pandemic disruptions to supply chains caused temporary inflation, not excessive demand from recovery packages. Prices fell once supplies were restored.
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Housing price increases were also temporary results of the pandemic. Prices are drifting down as conditions normalize.
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Rate hikes by the Fed did not resolve supply issues and may have slowed housing price declines.
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Inflation expectations remained low because markets understood supply issues were temporary.
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Recent disinflation happened despite rate hikes. The standard inflation/unemployment tradeoff was not seen.