The problem with that theory is that the higher prices and wealth destruction are not just "short term", they're here to stay for the foreseeable future unless

The problem with that theory is that the higher prices and wealth destruction are not just "short term", they're here to stay for the foreseeable future unless these political choices are reversed. Think about what factories make - durable goods. Which means if a cost rise is genuinely time-limited, it's just offset by drawing down inventories and you aren't going to see it. That's not what's going on, if anything it's the exact opposite with stuff being hoarded to be sold at even higher prices later.