Global Supply Chain Disruptions and Inflation During the COVID-19 Pandemic

Jesse LaBelle and Ana Maria Santacreu

Review, 2022, vol. 104, issue 2, 78-91

Abstract: We investigate the role supply chain disruptions during the COVID-19 pandemic played in U.S. producer price index (PPI) inflation. We exploit pre-pandemic cross-industry variation in sourcing patterns across countries and interact it with measures of international supply chain bottlenecks during the pandemic. We show that exposure to global supply chain disruptions played a significant role in U.S. cross-industry PPI inflation between January and November 2021. If bottlenecks had followed the same path as in 2019, PPI inflation in the manufacturing sector would have been 2 percentage points lower in January 2021 and 20 percentage points lower in November 2021.

Keywords: COVID-19; supply chains; inflation (search for similar items in EconPapers)
JEL-codes: F13 F14 F44 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (18)

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