Big business bosses are warning that supply chain issues and inflation are here to stay

A truck picks up a shipping container at the Port of Savannah in Georgia. The supply chain crisis has created a backlog of nearly 80,000 shipping containers at this port, the third-largest container port in the United States, with around 20 ships anchored off the Atlantic coast, waiting to offload their cargo.Paul Hennessy | LightRocket | Getty Images

LONDON — Top executives at multiple European blue-chip companies have told CNBC that supply chain problems, labor shortages and inflationary pressures will run for longer than policymakers are expecting.

The most recent inflation prints have done little to assuage concerns about stickier inflation. The U.S. consumer price index jumped 6.2% in October from a year ago, official figures revealed on Wednesday, the sharpest annual rise for 30 years and vastly outstripping the U.S. Federal Reserve\’s target.

Chinese producer price index inflation surged 13.5% annually in October, while U.S. PPI grew at 8.6% annually, equaling an all-time record.

Companies around the world are battling supply chain bottlenecks as a post-pandemic spike in demand converges with industrial production struggling to catch up after lengthy Covid-induced shutdowns.

Ahold Delhaize Chief Financial Officer Natalie Knight told CNBC Wednesday that although she was confident of the Belgian-Dutch grocer\’s strategy to deal with such pressures, they showed no sign of abating.

\”I think what we are definitely seeing is inflation is picking up, but what I would also say is when you look at food, it is a smaller share of wallet than some other categories, and we definitely see other areas where inflation looks a lot higher than in our industry,\” Knight said.

Leave a Reply

Your email address will not be published. Required fields are marked *