Insight - Don’t count soaring freight costs among inflation worries

Businesses must either absorb the higher freight rates or pass them on to customers, and in some cases inventory might not be available at all.

SOARING freight costs have been one of the key pain points in the United States economic recovery this year, contributing to inventory shortages and higher prices.

It’s still unclear to what extent and how quickly these higher prices might ease as the recovery progresses. Regardless, they should be seen as what they are: a shock that’s having a cooling effect on economic activity, rather than a long-term driver of inflation.