What has driven periods of higher inflation in the past?

When contemplating whether we are entering a new era of higher inflation, it makes sense to first reflect upon the lessons from history. While there are several insights that apply to the current debate, a unifying theme is that sustained high inflation is not simply ‘always and everywhere a monetary phenomenon’ – labour and product market institutions determine the extent to which price pressures translate into actual inflation, and where inflation settles in the medium term is ultimately the decision of policymakers.