Financial Analyst Alex Fieldcamp Discusses the Current Inflation Spike and the Outlook for 2022

Financial Analyst Alex Fieldcamp Discusses the Current Inflation Spike and the Outlook for 2022

Financial Analyst Alex Fieldcamp Discusses the Current Inflation Spike and the Outlook for 2022

By Alex Fieldcamp

Inflation has been the leading topic in financial markets since the summer, and has only become more pervasive in early 2022. While the US economy, outside of a few sectors, has rebounded robustly from pandemic shutdowns, with real GDP increasing 5.7% in 2021 and current-dollar GDP increasing 10.0%, supply chain disruptions and pent-up consumer demand in tandem have resulted in the highest level of price increases since the early 80s. The most recent CPI release shows prices increasing by 7.5% from January last year, and 6.0% ex-food & energy, the largest increases since 1982.  

What is Causing High Inflation?

The pandemic caused a shortage of some goods coming into the market due to labor shortages, supply chain disruptions, and production interruptions. Factories have had periods of reduced operations due to many workers being unable to work or concerns about the spread of COVID-19. These disruptions plus shipping Read the rest

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