“After many years of disappearance, the surge in inflationary pressure and rising supply chain costs hit the United States again when the United States recovered from the epidemic, bringing hidden worries to the economy.” The Wall Street Journal reported on the 9th that since this year, crude oil, grain and other large quantities have been reported. Commodity prices have soared, and “the costs associated with each step in the production process are rising.” The US consumer price level has increased by 2.6% in the past year to March this year, the highest increase since August 2018. The aftermath of high costs is affecting the entire supply chain, and many retail companies believe that there is no other way but to make customers accept the price increase. The head of Topco, the largest retail food company in the United States, said that the price of apples has risen by 10%-20% recently, and the prices of edible vegetable oils and various salad dressings have also increased significantly.
According to reports, due to supply chain issues and shortages of raw materials, the growth momentum of the US manufacturing industry cooled in April. According to data released by the American Institute of Supply Management on May 10, the U.S. Manufacturing Purchasing Managers Index fell to 60.7 in April from 64.7 a month ago, falling from a 37-year high, far lower than the 65 previously predicted. The analysis believes that the data reflects the negative impact of rising material prices and inflationary pressures on the manufacturing industry.
US media believe that the US government is still relatively confident in the face of inflationary pressures. At the end of April, Fed Chairman Powell stated that the inflationary pressure brought about by the supply chain was temporary and would not cause the Fed to change the current interest rate. U.S. Treasury Secretary Yellen also made an urgent clarification that he did not make any interest rate hike predictions. Some other Fed officials also emphasized that US inflation is unlikely to get out of control. Fed Governor Bowman said that the US inflation rate will rise to more than 2% in the next few months, but the risk of continuing to exceed the standard is small.
However, today’s Russian website (RT) reported on the 9th that the recent surge in U.S. commodity and real estate prices will continue. RT financial analyst Max Kaiser said that the current actual inflation rate in the United States may be as high as 7% to 9%, which is much higher than the level recognized by official figures.