Inflation is a function of the money supply and of demand for products. If the money supply is fixed, as it was under the gold standard, then inflation is absolutely a function of demand. If the money supply is not fixed, as it is not under a fiat monetary system, then the money supply becomes a function of demand.

The US just reached the highest inflation rate since 1982 in December. Inflation rose to 7% up from 6.8% the month prior in December 2021, suggesting that the economy is not on the growth pace that many economists predicted.