FRANKFURT, Sept 20 ― Acute bottlenecks in supply are driving inflation and holding back the recovery from the coronavirus pandemic, the heads of several major central banks said yesterday.
The uncertainty around supply issues was a “threat to growth”, President of the European Central Bank Christine Lagarde said at the close of the Frankfurt institution's annual forum.
“How long those bottlenecks will take to be resolved and to fade out remains to be seen,” Lagarde said.
She was joined virtually on the closing panel by the Chair of the US Federal Reserve Jerome Powell who said bottlenecks were “holding inflation up” longer than expected.
Prices rose at a rapid 4.2 per cent pace in July, on the Fed's preferred inflation measure, the personal consumption expenditures (PCE) price index, far above its two percent goal.
Shortages in raw materials and key components which have affected companies worldwide were “not getting better” Powell said, and could continue to have an effect into next year, although the Fed's expectations for growth remain “strong”.
Missing supplies were “really holding back the economy”, said the Governor of the Bank of England Andrew Bailey, and the challenge for the coming months was to “get through this period of uneven growth” caused by shortfalls.
The shortages did not have a “common cause”, Bailey said, and could not all be solved by changes to central bank policy.
In the UK, a lack of lorry drivers linked to the country's exit from the EU has caused scarcities of fuel and food, leading to queues at petrol stations and empty supermarket shelves.
Meanwhile, a global lack of semiconductors, a key component in cars and consumer electrical goods, has been exacerbated by coronavirus lockdowns at key points in the supply chain. ― AFP
Source: Malay Mail
A word from our sponsor:
Need Help With Your Personal Finance / Money Issue or need a coach to help you structure or just want to learn the financial skill to self manage your financial matters and retirement. iLearnFromCloud.com
Need to solve a problem quickly, now you can solve it by learning the art of problem solving Art Of Problem Solving
Feeling hungry. Latest food news from Best Restaurant To Eat Malaysian Food and Travel Blog
Memory loss. Need to organize better. Solve problem fast with Free Mind Mapping Software Mind Mapping 101
Need A Customized System Development for your business or Going Paperless XPERT TECHNOLOGIES - Empowering The Paperless Economy
No comments:
Post a Comment