Remember back in 2021 when inflation was “transitory” and surging consumer prices were blamed on the supply chain crisis? The Fed and macro investors became intensely interested in chaos at the ports. The focus on bottlenecks spurred the Federal Reserve Bank of New York to create a new barometer called the Global Supply Chain Pressure Index (GSCPI) in January.
It’ll cost more to mail letters and packages this holiday season.
Starting Oct. 2, the U.S. Postal Service is increasing its rates for both commercial and retail products. The agency last week filed notice with the Postal Regulatory Commission regarding the temporary price adjustment for the upcoming holiday season, which will run through Jan. 22.
The past few years have been volatile for retailers. Consumer demand spiked, and then products got stuck in the supply chain, arriving late and missing seasonal delivery windows. In response, retailers proactively increased orders to mitigate the risk of delays. However, consumer demand slowed, leaving warehouses full and operators stacking inventory while waiting for a decline.