Shoppers are extra involved about inflation than they have been earlier than the pandemic and imagine that controlling inflation has turn out to be tougher for authorities. They suppose worth pressures are broadening. Survey respondents imagine the next points are making inflation more durable to regulate:
- provide chain points
- the persistence of the pandemic
- excessive authorities spending (Chart 2)
Most count on provide chain points to persist for no less than one to 2 years (Chart 3). In follow-up interviews, some respondents stated the invasion of Ukraine might trigger provide chains to be rerouted and turn out to be extra native, resulting in increased costs for necessities. For instance, one respondent famous that the price of filling a Honda Civic elevated just lately from $40 to $70. Respondents additionally urged that costs will doubtless not decline even after provide chain points are resolved as a result of companies want to revive their revenue margins.