Asset prices inflate during excessive easing and spending but deflate when it stops
Supply chain issues contributed to inflation, however, the supply problems are the product of an overstimulated economy.
Inflation is the result of of monetary easing and fiscal policy. Basically, it is driven by excessive government spending and Federal Reserve policy that floods the economy with massive amounts of liquidity. Government spending was 27% of GDP during the 2020-2021 period and the Federal Reserve's balance sheet ballooned by about $5 trillion. An overstimulated economy is what drives the historic 40-year high inflation.
Excessive fiscal spending + massive liquidity by the Fed = out of control inflation. Moreover, Biden's climate change policies have resulted in less supply and higher prices. It's not price gouging as Biden and his party falsely claim.
Yes, pandemic and supply chain issues contributed to inflation, however, the supply problems are the product of an overstimulated economy. It's important to remember that asset prices inflate during excessive easing and spending but deflate when it stops.
Asset prices (e.g., housing, stocks) inflate during excessive easing and spending but deflate when the Fed's easy money transitions to tightening and fiscal spending ends. This is the reason the stock market* has shed $6.94 trillion (14.22%) in value since Jan 3, 2022.
*The Wilshire 5000, is a market-capitalization-weighted index of the market value of all American-stocks actively traded in the United States.