The effects of the coronavirus epidemic on the economy continue

The San Francisco Branch of the US Federal Reserve (Fed) reported that the problems caused by the coronavirus epidemic in the global supply chain have been reduced considerably, but its effects still continue to fuel inflation in the US .us

The San Francisco Federal Reserve has released a new analysis titled “Global Supply Chain Pressures and US Inflation.” In the analysis, it was recalled that global shipping and transportation costs increased after the start of the coronavirus epidemic, and delivery times and crowds reached historically high levels.

The analysis found that the resulting tight supply put significant pressure on inflation, with this estimated to contribute to about 60 percent of the upward trend in headline inflation in 2021 and 2022.

CONTRIBUTES TO SLOWING INFLATION

Supply chain disruptions have driven most of the rise in inflation since April 2021, and the decline in these disruptions since mid-2022 has contributed to the slowdown in inflation since then, according to the analysis.

The San Francisco Fed’s analysis highlighted that the contribution of supply chain pressures to inflation “remains positive, reflecting the lagged effects of the shock on inflation.” (AA)