Inflation Rises Again as COVID Recovery Slows and Supply Chains Remain in Chaos

The Consumer Price Index increased 0.4% in September, bringing the key inflation indicator’s year-over-year increase to 5.4%, the U.S. Bureau of Labor Statistics announced Wednesday.

The year-over-year 5.4% inflation figure is an increase from August’s 5.3%, and September’s figure represents the highest year-over-year inflation increase since January 1991, according to CNBC. The 5.4% increase in the CPI is slightly above the 5.3% economists estimated.

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IMF Expects Less Economic Growth from U.S. Amid Supply Chain Chaos

The International Monetary Fund cut its global growth forecast for 2021 on Tuesday, citing supply chain disruptions and pandemic-related health concerns.

In the International Monetary Fund’s (IMF) World Economic Outlook report, released Tuesday, the IMF’s economists share anticipations for global economic growth measuring 5.9% in 2021, a downgrade from their 6% projection in July.

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Groups Warn of Supply Chain System Collapse, as California Ports Face Record Backlogs

Seaport

The International Chamber of Shipping, a coalition of truck drivers, seafarers, and airline workers, recently warned heads of state at the United Nations General Assembly that if restrictive COVID policies don’t change and freedom of movement isn’t restored to transportation workers, a supply-chain collapse is imminent.

Industry leaders representing some 65 million transport workers asked the United Nations and heads of government to “take meaningful and swift action to resolve the crisis now.”

“Global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” they wrote in an open letter signed by the International Air Transport Association, the International Road Transport Union and the International Transport Workers’ Federation.

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Construction Industry Experiences Slowdown as Labor, Supply Shortages Wreak Havoc

The construction industry is struggling to recover from the pandemic due to difficulties hiring workers and severe supply chain shortfalls, a report found.

Construction contractors project revenue to remain stagnant and below pre-pandemic levels over the next 12 months even as the economy-wide recovery continues, according to the report published Wednesday by the U.S. Chamber of Commerce. While the Commerce Commercial Construction Index (CCI), which the Chamber measures on a quarterly basis, ticked up one point, it remained eight points below its early 2020 figure.

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Testing Supply Chain in Minnesota Re-Emerges as Concern

Minnesota health officials are concerned about renewed pressure on the testing supply chain, which could affect the state’s response to a recent growth in cases and plans to continue to ramp up testing.

Health Commissioner Jan Malcolm said during a press call Friday that state officials have received reports of delays or reductions in testing supplies like reagents and pipettes from some health systems across the state, which rely on their own supply channels for weekly shipments of testing equipment.

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