After spiking this spring and summer, they are now back to somewhat normal demands. This indicates that the supply chain issues may be easing, it could also indicates the volume is down.
Shipping prices, one of the most visible signs of pandemic-era supply chain snarls, have tumbled — really tumbled, Axios’ Kate Marino writes.
Why it matters: Economists — and Fed chair Powell — have consistently pointed to supply chain problems as one of the culprits behind high inflation.
- Yes, but: Inflation rates haven’t come down all that much over the last several months, even as port backlogs have ebbed and shipping rates have returned to earth.
And that’s something Powell is paying attention to. “As the supply side problems have resolved themselves, we would have expected goods inflation to come down by now — long since by now,” he said at yesterday’s press conference.
- “It’s come down, but not to the extent we had hoped,” he added.
The bottom line: Powell said this shows how, “without question,” the inflation picture “has become more and more challenging over the course of this year” — and that makes the potential path to a soft landing even narrower.Axios Markets By Matt Phillips and Emily Peck · Nov 03, 2022