Global Supply Chain Pressures and U.S. Inflation

Liu, Zheng; Nguyen, Thuy Lan

Journal Article

Global Supply Chain Pressures and U.S. Inflation

Abstract: Global supply chain disruptions following the onset of the COVID-19 pandemic contributed to the rapid rise in U.S. inflation over the past two years. Evidence suggests that supply chain pressures pushed up the cost of inputs for goods production and the public’s expectations of higher future prices. These factors accounted for about 60% of the surge in U.S. inflation beginning in early 2021. Supply chain pressures began easing substantially in mid-2022, contributing to the slowdown in inflation.

Keywords: supply chains; inflation; covid19;