Greg Mankiw’s Weblog: An Inflation Puzzle

A standard story concerning the current inflation surge in the USA – significantly amongst members of the Transitory workforce – is that the surge is essentially as a result of international provide shocks, such because the rise vitality costs, chip shortages and numerous bottlenecks because of the worldwide pandemic. So why aren’t we seeing an identical surge in inflation in Japan? Inflation there’s working at about the identical price as earlier than the pandemic. See under. (Click on on the picture to enlarge it.) I am puzzled.