U.S. gross domestic product in the third quarter of 2021 rose 2.3%, beating the 2.1% forecast. It was the slowest growth since the second quarter of last year.

GDP is down from the growth seen earlier in the year. As the economy charged forward with the easing of pandemic-era restrictions, a revival of economic activity pushed GDP in the second quarter to 6.7%.

The third quarter was impacted by ongoing supply chain bottlenecks that have reduced the level of stock available amid surging demand. Labor shortages across sectors of the economy have driven up prices.

These factors have driven up inflation to levels not seen in decades. The consumer price index is at 6.8%, the highest since 1982, and the producer price index showed the price of wholesale items jumped 9.6%.

These levels of inflation have dampened consumers’ optimism, according to recent surveys.

The Federal Reserve and the White House have taken action to limit inflation with new policies.