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.

Back to Resource Hub

Related Services

Office building in London


High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More


Why an ageing population doesn’t mean soaring inflation

What’s the future for inflation? Joachim Nagel, the new president of Germany's central bank, believes the rapidly ageing global population will play a key role – ramping up pressure on prices in the medium term. While we agree slowing labour supply will stifle output growth, in his recent discussion Nagel failed to fully consider the demand side of the argument.

Find Out More