Research Briefing | Apr 27, 2021

Global Industry | Spiking producer prices will subside before long

Research Briefing 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.

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