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Supply Chain Disruptions’ Impact on Inflation is Likely to Persist Despite Recovery



The relief to supply chains from the pandemic is uneven, and it may take longer for inflationary trends to work through them, according to a report by Bloomberg. Most of the goods transported by container ship are under long-term contracts and those deals were renegotiated in 2021 and 2022 at much higher rates. This may mean that some retailers and manufacturers are not seeing enough shipping-rate reductions to warrant slashing prices further.


Another reason inflation remains sticky is due to labour costs. Many firms are facing enduring increases in one of their biggest costs: labour. Worker shortages are hitting the supply-chain industries hard and it’s time-consuming and costly to train new employees. Higher costs for diesel, industrial equipment and major capital expenses, like new and used trucks, still exist, according to the report.


For more details, please visit the below website of gCaptin


Reference: Bloomberg ,"Supply Chain Disruptions’ Impact on Inflation is Likely to Persist Despite Recovery", gCaptin, Feb 27th, 2023


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