Not every inflationary environment is the same. With that said, inflation is generally caused by an increase in the demand for goods and services (demand-pull inflation), a decrease in supply of goods and services (cost-push inflation), an increase in the money supply, or some combination of the above. In 2021 and 2022, the U.S. economy experienced a combination of pent-up consumer demand and supply disruptions, both of which were caused by the Covid-19 pandemic. Meanwhile, the Federal Reserve and U.S. Government have been actively trying to stimulate the economy through monetary and fiscal stimulus, which can increase demand-pull inflation.