Fitch Ratings revealed in its report on Friday that the global pandemic-related supply chain disruptions have started to ease in the past couple of months as "shipping rates fall, consumer durable spending slows, order backlogs are cleared and queues at ports ease" suggesting that core goods (excluding energy) inflation will likely decline in the coming period.
"A slowdown in consumer demand for durables is helping to ease supply-chain bottlenecks as households’ purchasing power is dented by increases in interest rates and higher inflation," Fitch Ratings noted. Its report stated that indications of semiconductor shortages are starting to abate as Korean chip stockpiles climbed at the quickest rate since 2016 while growth in sales has sharply declined.
However, future disruptions to supply chains are probable since China's ability to export goods is threatened by its zero COVID-19 policy, as well as gas rationing in Europe that might impede industrial supply networks.
