The National Survey of Economic Conditions released by the U.S. Federal Reserve on the 13th showed that the economy in most jurisdictions achieved moderate growth, but the job market recovery slowed.
However, in this release of the Brown Book, perhaps the most noteworthy for investors is that prices rose slightly overall, but the increase in prices of production inputs continued to be higher than the increase in prices of goods and services, indicating that the ability of companies to pass on production costs to consumers was limited.
Nonetheless, according to the Brown Book, the most noteworthy increases were in the prices of construction and building materials, steel products and transportation services, which led businesses in some parts of the United States to prepare to raise prices for consumer goods.
Particularly in the retail, wholesale trade and manufacturing sectors, the ability to raise prices for products has improved, with some mentioning plans to raise selling prices in the coming months.
In addition, although energy prices have increased, they are still below pre-epidemic levels.
What does it mean when everything is going up?
That’s right, inflation is here.
As food prices climb, some market analysts believe that the current round of price increases may only be just beginning.
Meanwhile, prices continue to climb, driven by low inventories and rising construction costs.
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