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From the Washington Post this morning:

"Prices rose 5.4 percent in June compared with one year ago, reflecting upward-creeping inflation throughout the economy, as more consumers open their wallets and supply chains struggle to bounce back from pandemic pressures.

"Still, policymakers at the Federal Reserve and White House continue to predict that as the economy has time to heal, inflation will settle back down.

"Data released by the Bureau of Labor Statistics on Tuesday showed that prices rose 0.9 percent in the past month. The latest figures aren’t likely to rattle officials who have long maintained that the price increases are a temporary feature of a bumpy economic recovery. Their expectation is that inflation will simmer down closer to the Fed’s 2 percent annual target next year and in 2023.

"There are a few reasons inflation is on the rise. For starters, prices in 2021 are being compared to those from 2020, when the pandemic caused the economy to shut down and prices fell … Also, as vaccinations become more widespread and consumers unleash their pent-up savings, demand is rebounding much faster than supply can catch up. Many Americans are newly eager to book airline tickets, rental cars and hotel rooms, while the travel industry is still climbing back from the depths of the pandemic. Backlogged supply chains are also clashing with demand for products like furniture, bicycles and auto parts."