It takes time to produce physical widgets to meet demand, for manufacturers to scale, and then start benefiting from economies of scale. With Netflix, a millio

It takes time to produce physical widgets to meet demand, for manufacturers to scale, and then start benefiting from economies of scale. With Netflix, a million people can sign up immediately, supply adjusts instantly and economy of scale is locked in earlier. For digital goods you also have huge companies investing for the future. Your local hardware store need to continue to make a profit, whereas Amazon can absorb or push back on cost pressures for much longer. I agree with OP that this must put upwards pressure on inflation of physical goods even if it’s a medium term thing.