Bacon, bourbon and bricks: delivery delays add to inflationary pressures on American favorites
TAMPA, Fla. (WFLA) – Rising transportation and fuel costs add to the growing pile of inflation issues plaguing the United States and other parts of the global market, but some popular products in the United States United are facing shortages and delays that are more than economic in nature. problems at home.
Three products affected by shipping delays, material shortages, and increased transportation costs are Americans’ favorites or necessities.
We are talking about bacon, bourbon and bricks.
A United Nations report Trade and Development Conference released on November 18 showed that world import prices were increasing. Not much of a surprise in itself, the COVID-19 pandemic has fueled price spikes in several sectors for over a year.
The UNCTAD report showed that container freight rates are increasing and the effect on import price levels could very well continue until 2023.
“The current surge in freight rates will have a profound impact on trade and undermine socio-economic recovery, especially in developing countries, until shipping operations return to normal,” the said. Secretary-General of UNCTAD, Rebeca Grynspan. “Returning to normal would require investing in new solutions, including infrastructure, freight technology, and measures to digitize and facilitate trade.”
That’s a lot of words to say that things are likely to stay expensive for a while, even as consumer spending grows, especially now that it’s the holiday season.
Some products are getting more and more expensive for Americans, and not just because the fuel itself or the transportation is expensive. Meat costs, in general, are at their highest level for over 30 years. General inflation in the United States stands at 6.2 percent. The price of pork rose 14.2 percent in October, according to the United States Bureau of Labor Statistics Consumer Price Index.
Shipping costs and delayed delivery times are also hitting the alcoholic beverage market in a strange place, with a shortage of glass.
According to United States Distilled Spirits Council, a trade organization for spirits and alcoholic beverages, demand for bourbon and other beverages only increased during the pandemic. The cause of the shortage, however, is not just that more people are drinking.
An economist from the Distilled Spirits Council told CNBC that a major factor in the shortage was less alcohol and more than glass for making bottles of bourbon and other spirits was in short supply.
“Some of the big distillers, even though they have multi-year contracts for millions of bottles, in some cases find that they have to choose the bottle sizes they are going to get,” David Ozgo, chief economist. for the Distilled Spirits Council told CNBC.
Supply chain grunts that are hurting the glass industry are also hitting home builders, leading to higher prices for bricks, cement and other materials as availability decreases due to delays and slower production. production abroad.
The National Association of Home Builders, another industry group, reported that the cost of building materials since the start of the year rose 12.2% in 2021, compared to a much smaller increase of 4.5% from 2020. In addition , while the costs of materials have increased, the cost of services for residential construction has increased. less than the previous year.
In 2020, services became 12% more expensive, while in 2021, the same service prices only increased by 8.1%.
The BLS Producer Price Index showed that the cost of materials such as cement and hardwood both increased, in September, by 4.9% and 45.6%, respectively, from the previous year. Overall, the PPI showed that the costs of goods used in residential construction, excluding energy, rose 0.8% in October, although this increase is not seasonally adjusted. .
Concrete bricks, another residential building material, saw a 3.2% increase in cost from October 2020 to October 2021, according to the Federal Reserve.
At a time, NAHB said new home sales did not increase from the previous year, a change that comes as more and more investment firms buy single-family homes and make them available for rent rather than purchase, and the stock of available homes has shrunk.
Home construction loans also benefited from higher interest rates but became more available to builders and potential buyers. The Census Bureau found that the rate of housing starts was higher than the previous year, from October 2020 to October 2021, but lower than that of September 2021. In addition, the number of new residential building permits had increased.