Better Supply Chains Could Help Cure High Inflation

The Missing Link

Remember how hard it was to get stuff during the pandemic? Facemasks, new cars, furniture… virtually anything that was made abroad, or used foreign parts, was at some point or another delayed as global supply chains got pummeled.

But things are looking up, and that could be a good sign for inflation, too.

Better Chains, Lower Prices

The New York Fed’s Global Supply Chain Pressure Index dropped to a record-low last month, meaning that the pandemic-era crunch is behind us.

But that doesn’t mean there isn’t more room for improvement. On Monday, the Biden administration unveiled 30 new measures meant to improve supply chains. One of the measures utilizes the Defense Production Act, a legislature typically reserved for war time, to bolster domestic medicine manufacturing and shore up food supply chains.

Here’s how that’s hoped to help inflation: Better, and more stable supply should mean prices won’t spike out of nowhere. By bolstering domestic production and supply, the White House hopes to bring down prices and create disinflationary momentum heading into the new year.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23112902