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Wage Inflation vs. Supply-Side Inflation

The Mortgage Voice
The Mortgage Voice
Wage Inflation vs. Supply-Side Inflation
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Many people have been afraid to return to their jobs because of Covid, feeling they are risking their lives by going back to work. Better wages are being offered as an enticement to reenter the job market, but the public pays higher prices to offset the rise in wages. This is known as wage inflation, which is a long-term type of inflation. Supply-side inflation is more transitory, resulting from consumers remaining at home and purchasing more items online rather than going out to spend money on activities. A supply-chain bottleneck occurs when an increasing amount of items are purchased and languish on container ships that can’t be unloaded quickly enough to satisfy demand because there aren’t enough workers to fill the positions. Products on the shelf are then more expensive since there are fewer of them accessible to the consumer. Once more jobs are filled, the supply-side inflation will subside, but the inflation from higher wages will continue to be passed on to consumers and affect other areas of the economy. Jeff’s guests this week include:

– Christian Ramos from Westgen Loans discusses how conventional interest rates are being affected by the 10-year bond market.

– Relationship Trainer Dr. Jeannie Bertoli shares her thoughts about volatility in society today.

– Josh Thompson of Malibu Funding talks about catalysts that bring economic growth to cities and how that affects the market.

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