Various factors led to high inflation. The COVID-19 pandemic, which halted many operations and industries, disrupted supply and demand. With the relaxation of restrictions, many manufacturers find it hard to keep up with consumer demand. Tensions caused by the Ukraine crisis led to sanctions affecting trade. Other contributing factors include the food crisis and oil price hikes.
The stimulus package released to those highly affected by the pandemic is also seen as a driving force behind high inflation in the country. According to the Federal Reserve Bank of San Francisco, the payments may have caused a three-percentage point increase in inflation by the end of 2021.