The Covid-19 pandemic disrupted the flow of goods around the world – from lumber to semiconductors. The laws of supply and demand mean that people generally pay more for something that’s harder to find. And it can have a ripple effect throughout the economy.
For example, the recent shortage of vital computer chips caused major delays in the production of new cars. As a result, consumers switched to used cars, pushing the price of used cars up almost 30% from one year ago, and up almost 20% just in the last three months.
Even though many economies are making progress in fighting the pandemic, it will take some time for supply chains to return to normal.