inflationschock
An inflationschock, or inflation shock, refers to a sudden and significant increase in the general price level of goods and services within an economy. This phenomenon can be triggered by various factors, often external to the normal functioning of the market. One common cause is a sharp rise in the cost of essential commodities, such as oil or other raw materials, known as supply shocks. For example, a geopolitical event leading to a disruption in oil production can dramatically increase energy prices, which then ripple through the economy, affecting transportation, manufacturing, and ultimately, the prices of consumer goods.
Another driver of inflationschocks can be unexpected surges in demand that outpace the economy's ability to