Shortages and Inflation
Companies have underestimated post-pandemic demand and are scrambling to restock pushing prices up across the board
Companies have underestimated post-pandemic demand and are scrambling to restock pushing prices up across the board.
The Covid lockdowns shut down businesses as people remained quarantined at home. Consequently, businesses drew down inventories as they worried about a depression-like economic environment.
What few foresaw was that many consumers would exit this pandemic richer than when they entered it. Portfolios and home prices have performed very well, while savings rates have skyrocketed. There is a lot of pent-up demand, and as lockdowns across America subside sales comps at US retailers are rising.
Rising demand coupled with depleted inventories is causing a shock-like rush to restock.
Commodity prices are skyrocketing.
How bad will inflation get?
And what does this mean for the average consumer?