ABSTRACT

Global Supply Chain Disruptions and Inflation During the COVID-19 Pandemic   [open pdf - 359KB]

From the Document: "We investigate the role supply chain disruptions during the COVID-19 [coronavirus disease 2019] pandemic played in U.S. producer price index (PPI) inflation. We exploit pre-pandemic cross-industry variation in sourcing patterns across countries and interact it with measures of international supply chain bottlenecks during the pandemic. We show that exposure to global supply chain disruptions played a significant role in U.S. cross-industry PPI inflation between January and November 2021. If bottlenecks had followed the same path as in 2019, PPI inflation in the manufacturing sector would have been 2 percentage points lower in January 2021 and 20 percentage points lower in November 2021."

Author:
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Date:
2022
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Copyright:
2022 Federal Reserve Bank of St. Louis. Posted here with permission. Documents are for personal use only and not for commercial profit.
Retrieved From:
Federal Reserve Bank of St. Louis: https://www.stlouisfed.org/
Format:
pdf
Media Type:
application/pdf
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