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Supply chain prices rise: gas, wooden houses and chickens are all rising.



The stimulus economy is recovering and Americans are back for more shopping, traveling and eating out. But the epidemic is not over, and supply chain misery means supply is not meeting demand – sending prices higher.
U.S. consumer prices in April rose 4.2 percent from a year earlier, 3.6 percent more than economists had expected, the biggest increase in 12 months since September 2008, the highest in the financial crisis.

This is more expensive and why CNN Business writers say.

Chicken prices are rising.

Chicken in short supply caused the price to rise. Part of the blame goes to Tyson’s chatter.

The meat processor, which sells poultry along with beef and pork, said its chicken intake was low because the chickens used for breeding did not meet expectations.

“We are replacing men, who are pretty straightforward, we made the wrong decision,” said Donnie King, Tyson Chief Operating Officer and Group President of Poultry, during an analyst call this week.

To increase the amount of chicken Tyson (TSN) Are switching back to the rooster they used earlier, the company declined to share what will happen to the rejected hens or the number of shuffled.

Food was generally more expensive, too: Prices were up 0.4% in April, as both grocery and restaurant prices went up. Year on year, food prices increased 2.4%.

gasoline

The average price of a gallon of gas was $ 3 this week.
More and more gas stations along the east coast have been out of fuel in the past week as restless drivers have filled tanks after a ransomware attack that shut down the colonial pipeline, a blood vessel. Prime for gasoline for six days

The panic purchase threatens to exacerbate the supply shock. U.S. gasoline demand surged 14 percent on Tuesday compared to the previous week, according to GasBuddy, an app that tracks fuel prices and demand.

The pipe reopened on Wednesday night. But before the average pump price surged above a key psychological target of $ 3 a gallon on Wednesday for the first time in more than six years, according to AAA.

home

Limited inventory has sparked house prices down.
By the beginning of 2021, home prices continued to climb to new heights, breaking new records with prices rising in almost every major metro area. Limited inventory is part of the cause.

In 99% of the metro area tracked by the National Association of Realtors, prices in the first quarter of 2021 were up from the same period last year, according to the domestic NAR report.The median sales prices for existing homes were up 16% from the quarter. The first of 2020 was $ 319,200, both of which hit record highs since NAR began tracking quarterly city data in 1989.

Nearly 90% of the metropolitan area saw double-digit percentage prices increase last year. By comparison, only 25% of the area saw such growth in the first quarter of 2020 when housing inventory was at a healthy level and more in line with monthly demand.

Wood

Sawn timber is more expensive.

As a pandemic devastated the U.S. economy last spring, sawmills shut down timber production to support the housing slump. The slump never arrived, and now there isn’t enough wood to feed the sweltering housing market.

The shortage is slowing down the remodeling of bad-demand homes, complicating existing home renovations, and frightening up stickers for buyers in the scorching market.

Random long timber futures hit a record high of $ 1,615 last week, a seven-fold increase from the low in early April 2020.That’s a big deal because wood is the most important supply that homebuilders buy. The price dropped to $ 1,533 on Wednesday.

Used cars and trucks

There is a 10% increase in prices for used cars and trucks.
The biggest driver of inflation in April was a dramatic 10% rise in prices for cars and trucks. That represents more than a third of the overall increase in inflation and is the largest price hike since the government began tracking used car data in 1953.In the past year, used-car prices rose 21 percent.

What’s even worse is that auto dealerships only have a fraction of the vehicles they usually have both new and used cars. That sends a price to a record high. For example, the average new car price was $ 37,200 in the first quarter, according to JD Power, an 8.4 percent increase from the same period a year ago.

“That keeps wholesale prices for second hand at the highest level ever,” said David Paris of JD Power, “and we’re seeing second-hand retail prices accelerate.”

– CNN’s Anna Bahney Business, Matt Egan Chris Isidore, Anneken Tappe and Danielle Wiener-Bronner. Contribute to this report


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