Manufacturing And Inflation Explained

Manufacturing And Inflation Explained

Share to Linkedin Consumers see jacked up prices at the gas pump, notice a rising bill for household items, or deal with the reality of an expensive housing market. But they may not understand the additional market forces churning beneath the surface, cutting into their paychecks. The relationship between manufacturing and inflation is more complex and multi-faceted than most news reports give it credit for. So, here's a look at how the two move hand-in-hand, the underlying causes of inflation along the supply chain, and what manufacturers can do to soften the blow. First things first: How severe are the increases? The Consumer Price Index was up to 8. 5 percent in March, as high as it's been since the early 1980s. The index—the country's go-to metric for inflation—had been holding steady at or below the Fed's target of two percent for more than a decade, but the measure started to rise in 2021. In March, the Fed announced that it will raise interest rates a quarter of a percent, a step to curb buying and balance out supply and demand. Spending did dip in February from a strong month prior, but another interest rate hike could be on the