I have no data to back this up just anecdotal evidence but business investment likely slowed down massively due to rate increases, which would have greatly restricted the expansion of credit (thus new money) whereas consumers added on more credit which allowed them to maintain their lifestyle despite higher prices for everything. So business was not investing and expanding supply (many businesses were being conservative inventory wise expecting a slow down in the economy) and consumers were still spending like drunken sailors but on credit, thus creating persistent inflation.

The expansion of consumer credit tailwind against the headwinds of reduced business investment and the fed doing QT was simply not enough to keep the money supply expanding but was enough to keep inflation elevated.