WASHINGTON—Worldwide supply shortages have led to price hikes for raw materials in recent months raising production costs for many businesses. Due to the “depth and breadth of supply chain disruptions” economists expect consumer prices to continue to rise for some time. According to a recent report by Institute of International Finance (IIF), the supply disruptions caused by the global pandemic and economic lockdowns stand out for their severity and for their global spread. Supplier delivery delays in the United States and Germany are as severe as what Japan experienced in 2011 after the Fukushima nuclear disaster, the IIF economists said in the report. The disaster in Japan shook up the supply chains of many global brands including Apple and General Motors as they relied on Japanese suppliers for many parts. Similarly, the widespread commodity shortages happening today creep into various parts of the supply chain, raising production costs for many companies …
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