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Widespread Commodity Shortages Raise Inflation Fears

Paul Ashworth, an economist at Capital Economics, said the shortages were largely a result of factories being unable to keep up with pent-up demand that was being unleashed as consumers emerged from the pandemic ready to spend. And many factories are still not operating at a full clip. A shortage of truckers and clogged ports are also gumming up the gears that keep supply chains moving.


“This is better described as suppliers working at, or near, capacity and still unable to keep up,” Mr. Ashworth said. “Expanding capacity will take a lot longer.”

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