[selykg]

Inflation is the rise in costs for goods.

If the supply of these chips causes a loss in supply of in demand items, like cars, then it will cause an increase in the price of cars.

The thoughts are that this is temporary, until the components that are in low supply can catch up and meet the demand.

But if the lack of supply lasts for too long then people become used to the increase price and manufacturers can just keep the price there at the inflated price. Now it's permanent inflation. Or that can happen if the supply doesn't keep up with the demand.