Americans are feeling the impact of rising prices, and the companies leveraging price increases appear to be at odds over how long the inflationary pressures will last.
The Bureau of Labor Statistics reported on Nov. 10 that prices in October soared 6.2% year-over-year, the fastest annual rise in the Consumer Price Index since 1990.
Some of those inflationary pressures are coming from higher prices of oil, but the breadth of price increases across different types of expenditure categories suggests other factors at play.
Those at the Federal Reserve, the nation’s central bank, have used the word “transitory” to describe the dynamics at play. Those policymakers have blamed higher prices on supply issues linked to bottlenecks like limited microchip production and constrained ports.
In company earnings calls over the last few weeks, some executives sympathized with the view that this too shall pass (Team Transitory). But at other companies, concern is building that the supply chain may have dramatically transformed their businesses for good (Team Permanent).
