The majority of US pandemic-era inflation came from a surge in demand, but supply-chain constraints stoked it further, Federal Reserve Bank of New York research shows. About 60% of the inflation seen from 2019 to 2021 was driven by demand-side factors, with the rest stemming from supply issues, according to the analysis by the New York Fed. “The bottom line of this decomposition is that supply constraints magnified the impact of higher demand in inflation,” Julian di Giovanni, the head of climate-risk studies in the New York Fed’s research and statistics group, wrote in a blog post published Wednesday. Di Giovanni ... (full story)