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Inflation accelerates and demand declines in April’s supply shock: IHS Markit

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Global price pressure increased in April, according to the latest Purchasing Managers Index (PMI) data edited by S & P Global for JP Morgan. Data based on a panel of more than 30,000 companies in 45 countries show near record upward pressure on corporate costs amid supply chain disruptions and rising energy prices resulting from the Ukrainian war and the blockade of China. rice field.

However, in a press release, IHS Markit said in a press release that global economic growth slowed as demand growth slowed significantly, poses a downside risk to inflation in raw material prices in the coming months, as well as economic growth due to monetary tightening. He also emphasized risks.

Global price pressure increased in April, according to the latest manufacturing manager index data edited by S & P Global for JP Morgan. Data based on a panel of more than 30,000 companies in 45 countries have shown near record upward pressure on corporate costs amid supply chain disruptions and rising energy prices resulting from the Ukrainian war and the blockade of China. rice field.

The April PMI survey set new records for selling price inflation in the United States, Eurozone, United Kingdom and Brazil. Japan has reported near-record rates, and India has seen the highest rise since 2013. In contrast, China’s average price fell for the first time since May 2020, primarily reflecting demand curtailment due to new blockade measures.

As a result, the global PMI index, which aggregates sales price inflation across goods and services, has reached a level far above what was previously recorded since the survey began collecting sales price data in 2009. bottom.

The global PMI input price index, which has a longer time-series history than the sales price index, also rose further in April. The gauge has seen average input costs for manufacturing and services rise globally at a rate not witnessed since the 2008 commodity price shock, and since the data was first available in 1998. It has been shown that it rarely exceeds.

According to London-based IHS Markit, the clear implications of this further acceleration of corporate cost growth in April are the rise in global consumer prices, which is likely to accelerate further in the coming months. It is one.

Of particular note is that the rise in prices in the services sector, which generally lags behind prices in goods during a pandemic, is now almost in line with prices in goods. This partially reflects the recent surge in services as economies around the world relax COVID-19 restrictions.

Survey responses highlight three main causes of inflationary pressure.

First, raw material prices continued to rise in April as Russia’s invasion of Ukraine and a new blockade in China exacerbated the pandemic supply turmoil. The number of companies reporting rising raw material prices as a factor in rising costs has reached record highs, more than three times the long-term average.

Second, the rise in energy prices due to the Ukrainian War has exceeded the number seen in 2008, six times the long-term average, with more companies reporting that costs have risen against the backdrop of soaring energy prices. It meant running at an unprecedented level.

Third, finding staff was difficult and rising costs associated with existing employees pushed up wage pressure. Although down from recent highs, wages have put the strongest upward pressure on corporate costs in recent months since these data became available in 2005.

Fiber2Fashion News Desk (DS)



Inflation accelerates and demand declines in April’s supply shock: IHS Markit

Source link Inflation accelerates and demand declines in April’s supply shock: IHS Markit

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