[simonh]

Price is driven by the relationship between supply and demand. More money to spend means increased demand (assuming it isn't all saved), but if supply can increase to meet it that doesn't necessarily mean prices have to rise. If there are bottlenecks in the supply chain yes prices could go up, but also efficiencies of scale can even push prices down depending on the product.

Regardless of any change in prices of those goods there will be more economic activity to meet the demand. That economic activity comes from somewhere and could increase costs, and therefore prices elsewhere in the economy. So I think some inflation is inevitable.

The rise in stock prices since the pandemic crash is largely driven by the increase in the money supply. That money sloshing around has to go somewhere, and it's poured into stocks. This is because people aren't spending as much in the lockdown, so the excess money is going into savings.