Surging Commodity Prices Over The Past Year Will Help Drive US Consumer Price Inflation To Highest Rate In Nearly A Decade, John Mothersole, Pricing And Purchasing Research Director, IHS Markit
Date
29/04/2021
After a year of strong commodity price increases, inflation pressures are now building downstream in supply chains. The IHS Markit Materials Price Index (MPI) has more than doubled since March of 2020, with commodity prices collectively now at their highest level since early 2014. We can point to several factors to explain the rise: strong mainland Chinese demand, a shift in consumer consumption toward goods, a weaker US dollar, generous government stimulus, vaccine optimism and pandemic caused disruptions in supply chains.