Oh the hell it don't.
Is that the cost of energy going up, or the value of your dollar going down?
Both:
1.) reduced energy supply = higher cost.
2.) increased money supply relative to the supply of goods and services = reduced purchasing power
Biden is buring both ends of the inflationary candle.
Without increasing energy supply, the only option is to:
1.) Increase rates to reduce demand relative to supply
a.) Higher rates and inadequate velocity of money leads to insufficient liquidity
b.) Demand for dollars increases relative to supply of goods, services, and circulating currency
c.) Shortage of dollars results in reduction of dollar-denominated value of assets
d.) Reduction of dollar-denominated asset values creates credit insolvency
e.) Insolvent entities call-in credit facilities, demanding immediate repayment in dollars
f.) Demand for immediate dollar repayments, leads to sale of assets at reduced values to book
g.) This creates more insolvency that demands more asset sales at further reduced dollar prices to provide dollars for repayment
i.) Thus, debt is the atomic fuel for a nuclear recursive deflationary death spiral
j.) GAME OVER
This is where we were headed during the 2008/2009 credit collapse. The Fed countered deflation by manufacturing monetary inflation. They took unprecdented step of exchanging dollars for private credit vehicles to inject liquidity into the credit markets.
The Fed intentionally created inflation, by injecting massive numbers of dollars, to blunt a deflationary death spiral that was taking the World to a second Great Depression.
Our economy and governemt has become addicted to unnaturally low interest rates. Any attempt to increase interest rates too rapidly will cause sudden, violent seizing of credit markets once again.
A slow, steady, predictable, coordinated global increase in rates is required to allow insitutions and individuals the opportunity to retire debt (contract the money supply) incrementally to avoid rapid monetary dislocation, credit seizures, and liquidity crunches.
If debt is not retired, the money supply increases unabated and the US becomes the new Zimbabwe.
