San Francisco Fed: Supply chain still feeds inflation

The San Francisco Branch of the US Federal Reserve has published a new analysis titled “Global Supply Chain Pressures and US Inflation.”

In the analysis, it was reminded that global shipping and transportation costs increased after the start of the Kovid-19 epidemic, and delivery times and agglomerations reached historically high levels.

It was noted in the analysis that the emerging supply shortages put a significant pressure on inflation, and it was estimated that this contributed to approximately 60 percent of the upward trend of headline inflation in 2021 and 2022.

Supply chain disruptions have triggered most of the rise in inflation since April 2021, and the easing of these disruptions since mid-2022 has contributed to the slowdown in inflation since then.

The San Francisco Fed’s analysis highlighted that the contribution of supply chain pressures to inflation “continues to remain positive, reflecting the lagged effects of the shock on inflation.”