How Technology Can Mitigate Inflation’s Impact on Supply Chains
Inflation has been only a minor influence on the U.S. economy for decades—so long, in fact, it’s difficult to fathom the full impact of its return, especially in regard to supply chains.
According to the latest Bureau of Labor Statistics figures, the Consumer Price Index (CPI) has risen 8.5% over the past 12 months, the highest annual rate since 1981. Inflationary pressures affect every aspect of life, from the price of cookies to the cost to ship a sofa. The average price for beef and veal has risen 16% in the past year; gas prices, spurred by recent global events, have recently reached their highest (nominal) levels in history.
Wage inflation is staging a comeback as well. After hitting nearly 15% in the early days of the COVID-19 crisis, the unemployment rate dropped to 3.6% in March. The latest Labor Department employment report shows the average hourly pay barely rose in March and increased only 5.6% in the past year, indicating that wages haven’t kept up with inflation—and that the standard of living, for many people, has dropped.
