How Inflation Works (or Why Your Chicken Is Going to Cost More) | The New York Times

While still low, prices are starting to rise, in what would amount to a major shift if it persists. Higher prices for rents, gasoline, medical care and food helped drive prices up 2.1 percent in the 12 months that ended in January.

The root of inflation
is a strong economy

After the global financial crisis, the world sank into one of the deepest recessions since the Great Depression. And for most of the last decade, it has been in an economic funk, characterized by low levels of growth and piddling price increases.

To get raw materials
in and deliveries out,
companies need trucks

Trucks deliver the raw ingredients and trucks deliver the final goods. But there is a limited supply of trucks.

Basic economic theory then kicks in. When demand goes up and supply holds steady, prices should rise. Essentially, companies that need things shipped are willing to pay more to get them delivered.

Sure enough, so-called spot rates for freight — the price for deliveries not covered by longer-term contracts — rose by more than 20 percent last year.

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How Inflation Works (or Why Your Chicken Is Going to Cost More) – The New York Times.