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Spiking producer prices will subside before long

Rising raw materials prices, supply-chain disruptions, and surging shipping costs are raising expenses for producers, boosting near-term global inflationary pressures. We believe this burst of producer price inflation will prove temporary. We see stresses beginning to ease in H2 2021 as supply-side problems gradually resolve and easing lockdown restrictions reduce price pressure on in-demand sectors such as e-commerce and postal services.

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