> It's fine and valuable to ask about the reasons why inflation is occurring, but the answer does not add or diminish it in the slightest.
Of course it does. Prices going up by 5% rather than the usual 2% over a particular time period is a fluctuation in variables, not a catastrophe. The "why" and "what next" is where the catastrophe might exist. If the central bank doesn't have a clue why it's happening that might be a cause for concern. If the reason why it's happening is because the government's only revenue stream is the printing press, that's a massive problem: the present inflation rate is the tip of the iceberg. If the reason why it's happening is because the central bank which normally keeps inflation at a consistent level has decided to hold off on interest rate rises to prioritise the economy recovering from a pandemic (perhaps also believing the factors driving the inflation are short term), above-usual inflation is a detail, and not even a surprising one.
Of course it does. Prices going up by 5% rather than the usual 2% over a particular time period is a fluctuation in variables, not a catastrophe. The "why" and "what next" is where the catastrophe might exist. If the central bank doesn't have a clue why it's happening that might be a cause for concern. If the reason why it's happening is because the government's only revenue stream is the printing press, that's a massive problem: the present inflation rate is the tip of the iceberg. If the reason why it's happening is because the central bank which normally keeps inflation at a consistent level has decided to hold off on interest rate rises to prioritise the economy recovering from a pandemic (perhaps also believing the factors driving the inflation are short term), above-usual inflation is a detail, and not even a surprising one.