The United States is beginning to escape from the supply chain crisis, and high inflation is an indirect benefit

It is learned that according to the latest report from insider, the United States has begun to escape from the supply chain crisis. As the supply chain returns to normal, prices may eventually fall and inflation growth will also reach a turning point.

The report said that now, the time required to ship goods by sea in the United States is getting shorter and shorter, freight rates are also showing a downward trend, and major retailers are clearing out excess inventory through promotions, which will be a good sign for consumers.

According to the Ocean Shipping Timeliness Indicator tracked by logistics company Flexport, in October 2021, it took more than 110 days for goods to be shipped from Asia to the United States; in the week ending July 10, 2022, that number had dropped sharply to 95 days, a rate not seen since mid-2021.

Although it is still slow, it is a huge change for Americans who are suffering from the supply chain crisis.

Meanwhile, economists believe supply chains are stabilizing. In a note Monday from Morgan Stanley Chief Investment Officer Lisa Shalit, the investment bank found that "stress on global supply chains has eased."

The cost of shipping commodities has also been falling. The index is a composite of several different major shipping costs, and the decline in recent weeks suggests that these costs are getting closer to normal levels. In the late summer and early fall of 2021, the index began to surge as supply chain issues seemed to dominate the economy. Now it is back to its lowest point since April 2021.

In January, the New York Fed said the supply chain crisis may have peaked and “may begin to ease in the future.” Now, seven months later, that expectation is coming true.

The price inflection point appears, and consumers finally breathe a sigh of relief

While Morgan Stanley warned that a stabilization of supply chains could be bad news for corporate profits, it would be a relief for U.S. consumers who have become accustomed to high prices.

Supply chain issues and the resulting shortages have been one of the factors driving U.S. inflation to levels not seen in decades. In the post-epidemic period, Americans' willingness to consume remains high, and when goods are in short supply, the imbalance between supply and demand will keep commodity prices high.

But as supply chains gradually resume, goods will become more plentiful and prices for goods and services will fall, as Insider's Ben Winck reports, though that may not be soon.

Editor✎ Ashley/

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