This page looks at the different components of annual inflation since March 2021. Most of the surge in prices we have seen has come from "transitory" components related to supply-demand imbalances. This includes energy, new and used vehicles and food inflation. However, "sticky" inflation has also strengthened and even on its own, sticky inflation is running above 2%. This includes things like rent, household furnishings, apparel and services sectors. Services sectors have seen some of the largest wage increases recently and it's likely these costs get passed to consumers. Looking forward, we expect transitory inflation to eventually subside. However, sticky inflation is robust enough to keep the Fed on a tightening track even when these supply issues get worked out.