Economic Policy Institute offers an explanation that our current inflation is different from previous recessions in the US in addition to what NDd and Barkley Rosser offer :
Since the trough of the COVID-19 recession in the second quarter of 2020, overall prices in the NFC sector have risen at an annualized rate of 6.1%—a pronounced acceleration over the 1.8% price growth that characterized the pre-pandemic business cycle of 2007–2019. Strikingly, over half of this increase (53.9%) can be attributed to fatter profit margins, with labor costs contributing less than 8% of this increase. This is not normal. From 1979 to 2019, profits only contributed about 11% to price growth and labor costs over 60%, as shown in Figure A below. Nonlabor inputs—a decent indicator for supply-chain snarls—are also driving up prices more than usual in the current economic recovery.
Normal and recent contributions to growth in unit prices in the nonfinancial corporate sector
|2020 Q2–2021 Q4||1979–2019 average|
|Nonlabor input costs||38.3%||26.8%|
|Unit labor costs||7.9%||61.8%|
Source: Author’s analysis of data from Table 1.15 from the National Income and Product Accounts (NIPA) of the Bureau of Economic Analysis (BEA).