Inflation has become a hot-button political issue worldwide. In the US, the consumer price index increased at an annual rate of 8.6% in May, and EU inflation isn’t far behind. The root cause: too much money is chasing too few goods. Consumers saved more than usual when they cut back on expenses during the pandemic, then increased purchases after lockdowns were lifted. But supplies increased more slowly, as it took time to revive production and many workers were still getting ill. While shipping bottlenecks and labor shortages further constrained production, increasing fiscal deficits and continued ultra-loose monetary policies put further pressure on prices until 2022.