Business Resource Center

The U.S. Inflation Rate vs. The Supply Chain

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As current supply chain bottlenecks resolve themselves, the extreme level of inflation in the flexible basket will drop substantially.

First, home prices have risen substantially over the past year, which will likely lead to higher rents over time. Second, the labor market is currently very tight, driving wage increases for workers. As these wage increases impact pricing for service industries, we expect to see price increases in that part of that sector as well.

These views are based largely on the assumption that consumer demand will remain relatively stable over the next year, and that pandemic-related disruptions will subside. If demand suddenly increases, or there is an unexpected disruption to the supply of goods again, a more prolonged period of inflation would likely result.

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The views, opinions and positions expressed are those of the referenced authors at the time of publication and are based upon information available at that time. There can be no assurance that any of the beliefs and views expressed herein will prove to be accurate, and actual outcomes or events may vary significantly from those presented. The authors’ views are subject to change and do not reflect the views, opinions or positions of Synovus Financial Corp, who makes no representations as to accuracy, completeness, timeliness, suitability or validity of information presented and will not be liable for any errors, omissions, or delays in this information or any losses, injuries or damages arising from its display or use. The information provided in this material is intended to highlight present economic and market conditions in general. It does not constitute any recommendation and is not meant for use as personalized or individual investment advice. We encourage you to speak with your financial professional concerning your specific investment goals and risk tolerance before making investment decisions.

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