Most of the time there is inflation. . very seldom is there deflation. . . the issue is how much and for how long which the OP didn't really address. . . Currently there is a calculation basis issue causing year over year inflation to calculate much higher due to the 3 months of deflation a year ago due to the economic shut down. However, if you look at the two year annualized inflation, its not up that much.
However, the sudden opening and the lack of employees is causing labor inflation which hasn't been seen in a long time. The reason for the lack of employees is NOT the unemployment checks, but a little more nuanced. First, there is not the availability for daycare for dual working families, so there are fewer employees available than prior to the pandemic as one has to take care of the kids. Secondly, the quantity of prime age employees in the US population is now shrinking. That is right, there are now less available employees available therefore there will be labor inflation as a battle for employees. I posted a Barry Ritholtz article that most people didn't believe, but there is more to employment than just the unemployment check size. But go ahead and believe the easy answer, its your right.
Working Age Population: Aged 15-64: All Persons for the United States (LFWA64TTUSM647S) | FRED | St. Louis Fed
There are other issues with very low inflation, such as companies can't increase prices, go for increasing volume, but that is much harder, and if volume can't be increased, then the only way to grow profits is to cut overhead costs, which is primarily corporate labor, thus more unemployment. . . and less maintenance and more automation as a fixed expense without inflation.
but its getting late. .
finance guy