Global Industry | 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.
What you will learn from this report:
- 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.
- The pandemic’s legacy could increase wage pressures due to reduced
migration, reshoring, and lower labour participation. However, other constraints on wages could strengthen, such as increased automation and elevated unemployment. - We project global producer price inflation will experience a spike this
year, especially in emerging markets and the US. But it won’t persist.
Tags:
Related Services
Post
Local rates and FX: Asian local currency sovereigns – not long now
The pieces are almost in place for a high conviction OW on Asian local currency debt, but not quite. Indeed, we maintain a cautious view on all EM local currency sovereign bonds, including Asia, given the relentless concern over the dollar and domestic inflationary pressures.
Find Out More
Post
Pre-emptive debt restructuring: a viable scenario for Africa?
The question of debt restructuring is becoming a more pressing one: in recent weeks, a number of African sovereigns have openly or discreetly mulled public debt reorganisation, called for debt relief, or suffered credit rating downgrades owing to rising default odds.
Find Out More