Economics

US Pandemic-Era Inflation Mostly Driven by Demand Surge, NY Fed Study Finds

  • Supply-side constraints magnified impact, di Giovanni says
  • Most US sectors were affected by bottlenecks during pandemic
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The majority of US pandemic-era inflation came from a surge in demand, but supply-chain constraints stoked it further, Federal Reserve Bank of New York research shows.

About 60% of the inflation seen from 2019 to 2021 was driven by demand-side factors, with the rest stemming from supply issues, according to the analysis by the New York Fed.