Inflation captured the world’s attention in the second half of 2021, and the first half of the new year will probably include more steep price increases. But most forecasters expect supply-chain crunches to sort themselves out by mid-2022, so by the end of the year inflation will likely be back under control. Prices for some goods might even be falling by the end of this year.
Why inflation was so high in 2021
Last year’s inflation was driven by sharply increased demand and limited supply, both of which were caused by covid-19.