Inflation hit a 40-year high of 8.5% in March. Prices for used cars/trucks, energy, air travel and food were 35%, 32%, 24% and 9% higher, respectively, than a year ago.
Prices were driven by strong consumer demand, Russia’s invasion of Ukraine, continued supply chain struggles and the rise of COVID in China. The Russian invasion raised oil/gas prices, also food prices since Russia and Ukraine are major exporters of agricultural products. Computer chip shortages continue to limit availability of new cars, driving up used car prices. Annual wage growth was 6% in March, lower than inflation, potentially setting the stage for workers to request higher wages, putting further upward pressure on prices.
In inflationary times, how can companies hold costs down? MOSIMTEC simulation modeling can help. Explore ways to change the cost structure, reduce costs of key inputs and evaluate/test cost levers. Become more cost effective by refreshing the business model, improving the supply chain, modifying production lines or automating functions. Outdo competitors with creative cost cutting changes and do it quickly, cost effectively and virtually before making real world changes. MOSIMTEC can help you future-proof and cost-proof your business.
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Read more here: https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2022-11649725215?mod=automatedsf_trending_now_article_pos3