top of page

Supply Pressures are Back !

Last few months, there has been a reversal in supply pressures but these pressure points are only limited to logistical issues this time. The current events causing supply pressure include countries restricting certain food exports to make sure domestic consumption is not disturbed. And it also includes the various essential workers going on strike.

Both of these elements do justify the reasons for such an action but given that inflation remains high any pressure in supply during the upcoming festival season might delay it causing another round of inflation worries.

The problem with these actions is that they are spreading across geographies and causing disturbances frequently as the world economy continues to recover. Any relief or reversal to this trend might only come next year or so as the problems leading to them have longer timelines.

The issue that the global leaders and central banks face now is that these supply issues cause the next round of inflation. Do they continue to fight actively or play a passive role and let it resolve on its own as global excess saving gets finished by this year's end?


bottom of page