hree main components explain the rise in inflation since 2020: volatility of energy prices, backlogs of work orders for goods and service caused by supply chain issues due to COVID-19, and price changes in the auto-related industries.

For example in 2021, large and consistent price increases impacted a variety of products across the global economy.1 The factors contributing to these increases were the ongoing complications from the COVID-19 pandemic and supply chain disruptions. In 2021, a semiconductor shortage caused decreased production in a variety of industries. A related factor was port congestion caused by an inability to offload ships and secure trucking services.2 The resulting delays in product delivery translated to substantial supply shortfalls and upward price pressure. Data from the Bureau of Labor Statistics (BLS) provide more detail on the nature of rising prices in 2021.