▪ The global economy is recovering thanks to widespread COVID-19 vaccination and economic stimulus measures. However, the global supply chain remains unstable.
▪ Inflation in advanced economies and emerging markets/developing countries is partly due to strong global demand. Global supply shortages caused by the global supply chain disruption in 2021 are another factor.
▪ Automotive semiconductors shortages are causing automakers to cut production and increase prices.
▪ Inflation in Europe is mainly due to the supply-demand mismatch in the labor market, material and parts shortages, and the resulting manufacturing disruptions.
▪ Logistics costs soared as congestion at ports worsened after pandemic related port closures and dock worker shortages.
▪ Recently, issues regarding China’s international relations have emerged as a factor increasing global inflationary pressures.
▪ The supply chain disruption, whose end is uncertain, may increase inflationary pressures at home and abroad.