Economists and policy makers largely view the recent rapid pace of price growth as transitory—that is, caused by the supply constraints of the pandemic and likely to ease once the pandemic dissipates. But much is uncertain. Shortages of labor and equipment in the transportation sector, and outbreaks of another wave of infections in some materials-exporting countries could will likely push the transitory inflationary pressures into next year. In this paper we explore:
- supply chain disruptions and their trajectory for resolution
- labor market friction arising from disequilibrium
- consumer inflation expectations
- what Consumer & Retail companies can do now to prepare.
Inflation within Consumer & Retail: Transitory or Sustained?
Costs continue to rise. What can consumer and retail companies do to remain competitive in the face supply constraints and price pressures?