Week Ahead: U.S. Inflation Takes Center Stage
XM Group | Sep 10, 2021 09:07AM ET
Supply chain blues
It looks like inflation won’t cool as quickly as the Fed thinks. The idea was that the pandemic disrupted global supply chains, pushing prices higher for some goods and services, but those issues would get resolved fairly quickly as companies adapted and expanded their production capabilities.
That narrative took a beating lately as several Asian economies went into lockdowns to battle the Delta outbreak. Business surveys like the PMIs highlight that supply disruptions have become even worse. Production and shipping costs are rising, and companies are passing much of that on to consumers in the form of higher prices. Even the world’s largest chipmaker, TSMC, is raising its prices significantly next year.
Finally, New Zealand's second-quarter GDP stats will be released Thursday, but with the third quarter now almost over and the nation suffering shutdowns lately, markets will likely view this dataset as outdated.
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