Fed Research Identifies Main Culprit Behind US Inflation Spike

InflationMoney Matters
Written By Jennifer Joslyn

⬆️ Fed Research Identifies Main Culprit Behind US Inflation Spike.

The breakdown of global supply chains during the pandemic has been widely recognized as a major driver of inflation. According to a research paper from the Federal Reserve Bank of San Francisco, approximately 60% of the surge in prices in the United States since 2021 can be attributed to the logistics crunch. Bottlenecks in logistics networks, increased transport costs, and shortages of goods have fueled inflation, pushing the US inflation rate to a four-decade high in mid-2022. The study highlights the significant impact of supply chain disruptions on inflation and suggests that addressing these challenges is crucial to mitigating inflationary pressures.

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Jennifer Joslyn
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