What has pushed prices up so quickly? It all started with the Covid-19 pandemic, which caused factories around the world to shut down for months. The production of cars, computer chips, and other products was halted. When those factories reopened, they faced difficulties in getting workers to come back.
At the same time, people were still buying new things, such as computers, exercise equipment, and furniture. As life returned to normal, they splurged on cars, clothing, and shoes. People actually shopped more in 2021 than they did before the pandemic.
Here’s the problem: Because of the factory shutdowns, there wasn’t enough stuff being made, and companies couldn’t meet the demand for their products. Anytime the demand is higher than the supply, prices rise.