Inflation is due to creation of money which in this system is based on borrowing. There are two circuits of currency, one is an internal currency used by the federal reserve banks and the commercial banks which determines how much the commercial banks can "lend" and the other is the the fiat currency we use. So in essence, inflation is determined by the people who run the federal reserve system in conjunction with how much people and the government borrow. So there was tons of inflation because the government printed tons of money during the pandemic in the form of "loans" and "stimulus checks" (ie government borrowing from the fed) - plus with interest rates super low all the private borrowing (like mortgages), which amounted to around 4 trillion dollars over a couple years which was around 25% of the total money supply, hence the overall ~12% inflation a year that we saw.
Inflation is due to creation of money which in this system is based on borrowing. There are two circuits of currency, one is an internal currency used by the federal reserve banks and the commercial banks which determines how much the commercial banks can "lend" and the other is the the fiat currency we use. So in essence, inflation is determined by the people who run the federal reserve system in conjunction with how much people and the government borrow. So there was tons of inflation because the government printed tons of money during the pandemic in the form of "loans" and "stimulus checks" (ie government borrowing from the fed) - plus with interest rates super low all the private borrowing (like mortgages), which amounted to around 4 trillion dollars over a couple years which was around 25% of the total money supply, hence the overall ~12% inflation a year that we saw.