According to the US Department of Labor’s Producer Price Index (PPI), wholesale prices increased for the seventh consecutive month in January.
Per Bloomberg, the proximate cause were the prices of crude oil and other raw commodities. Producers are expected to be able to pass along these price increases to their customers, though the Federal Reserve does not expect these price increases to result in a marked increase in consumer price inflation.
In the wake of the COVID-19 pandemic and escalating tensions with China, American companies are actively seeking alternatives to mitigate their supply chain risks and reduce dependence on Chinese manufacturing. Nearshoring, the process of relocating operations closer to home, has emerged as an explosive opportunity for American and Mexican companies to collaborate like never before.