- The story is that prices are rising because components and commodities are in short supply, and supply chains are dogged by production issues, and are facing transportation constraints, as demand for those goods has suddenly surged.
- Of the roughly four dozen commodities in the index - from corrugated boxes via cold rolled steel and plastic resins to memory chips - only one showed a price decline (caustic soda); all others increased.
- Consumer spending on goods has surged in 2020, particularly on durable goods, as demand for services, which account for nearly 70% of the economy, has dropped sharply.
For further details see:
Inflation Galore At Manufacturers, Amid Massive Shifts In Demand, Supply-Chain Snags, Shortages, Lack Of Shipping Capacity. And They're Passing It On