If inflation rises significantly while unemployment remains low, what underlying economic mechanism is most likely causing this situation according to the Phillips Curve?

The Phillips Curve suggests that there is an inverse relationship between inflation and unemployment. This means that when unemployment is low, inflation tends to be higher because more people are working and spending money, which increases demand for goods and services. In this situation, businesses might raise prices because they know consumers have more income to spend. For example, if many people have jobs and are earning good wages, they might buy more cars, leading car manufacturers to increase prices due to high demand. Therefore, the underlying economic mechanism at play is that strong consumer demand, fueled by low unemployment, drives up prices, resulting in higher inflation.