Red-hot Inflation is Driven Mostly by Rising Goods Prices—Themselves a Byproduct of a Supply Chain in Crisis.
Thanks for this analysis.
I would love to see an analysis of the change in CPI by sector.
For example, here in El Salvador and Guatemala (two Central American countries) we have inflation because of American inflation.
Salvadoran inflation (which is dollarized and more dependent on imports) is twice (6.5%) that of Guatemala (2.9%), and almost identical to America. However, it's exactly the same sectors those who have suffered the greatest price increase in both countries.
Checking out the CPI of these two countries shows clearly two sources of price increases:
- This whole supply chain issue is reflected on consumers through an increase in *retail furniture prices*, *food* (many of which is imported), and *restaurants*
- An increase in *gas prices* and in the *transport* sector.
(Sources: bcr.gob.sv and ine.gob.gt)
I find the sectoral breakdown to be quite illuminating.