The supply chain disruptions in the economy will likely last months, not years. That’s according to SDSU Economics Professor Dr. Joe Santos who spoke at the Agrivisions 2022 Ag Conference in Yankton, South Dakota. He says the labor shortage has caused the crunch in the supply chain and inflated the prices consumers are paying for durable goods, including food.
Santos says the pandemic has created the perfect supply chain storm and that won’t change substantially until the pandemic eases.
He says durable goods inflation will continue as a result of demand outstripping supply, but the same type of inflation is not impacting services.
Santos says to slow down inflation the Fed is signaling it will raise interested rates several times in 2022.
