>this is the fractional reserve banking system

Seems like we may need a new technical term to replace "fractional reserve banking", because the Fed reduced reserve requirement ratios to zero percent a year ago.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

That's not true at all. Central banks have tried to stoke inflation for close to a decade now without success. The reason behind the current rise is just what the article mentions: "poor weather, increased demand and virus-mangled global supply chains". Or maybe you are confusing the actions by the federal government (stimulus checks) with those of the central banks (QE). The former most likely does have inflationary effects - the latter hasn't had an effect for well over 10 years by now.

>to finance not capital creation, but current consumption

I don't understand the distinction here. Capital creation results from meeting the needs of current consumption, no?

Something has to be produced before it can be consumed.

IMO it's more likely a result of a global pandemic disrupting labor and supply chains combined with some unlucky weather events hurting crop yields.

Or, as I like to call it, Magic Monetary Theory.