Inflation May Be Cooling Off This Winter. Is This Good News for the Supply Chain?

In a win for consumers and businesses alike, a key finding from the latest Bureau of Labor Statistics report suggests that inflation may be cooling off at a faster rate than expected. Comparing wholesale prices to a year ago, an 8% increase is the smallest annual increase since July of last year.

With PPI numbers giving some optimism to bulk buyers, what does this potential inflation cool-down mean for the supply chain? Will this ease any of the B2B pain felt between suppliers and buyers as both parties try to fend off the rising cost of raw materials, fuel, and logistics in general? Chief Strategy Officer at Cargomatic, Weston Labar, weighs in on the supply chain’s outlook.

Weston’s Thoughts

“The recent news about the producer pricing index comes as very welcoming for many of the nation’s economists. It shows that there’s a softening in the increased rise of inflation, and couple that with a very strong job market and consumer spending habits through the holiday season. The National Retail Federation is showing record setting consumer spending this holiday season, coupled with steady credit card rates between 18% and 22%. What we’re seeing is the American consumer continues to buy, which is good news for the economy.

Much of the transportation-related inflation, based on congestion from overseas ports and manufacturing centers to the distribution network throughout the United States, has cooled off significantly this quarter, with trucking capacity becoming more available and the ability to move goods to and from warehouses and distribution centers, and get them into stores and homes has become much more affordable for many of our nation’s retailers.

The nation’s retailers also by-and-large front-loaded their products earlier this year not to have missed seasonal goods as they saw in 2021, meaning that they pivoted from a just-in-time to a just-in-case distribution network, which has helped them by having goods here, controlling the cost of goods by-and-large the second half of 2022, and moving into 2023 in a much more advantageous position as it relates to procuring transportation needs, whether that be shipping, rail or trucking.”

Follow us on social media for the latest updates in B2B!


Hotel demand
Travel in 2023 Isn’t Slowing: Will Economic Headwinds Threaten Hotel Profits?
December 1, 2022

Travel in 2023 will not be slowing down. This would normally be perceived as good news for hoteliers, but PwC’s Hospitality Directions report paints a more mixed picture for hotels; the report indicates that economic headwinds may threaten the pace of recovery in the industry, despite record highs for metrics like RevPAR this year. According […]

Read More
B2B payments
There Will Not Be a Dominant Player Taking Over B2B Payments in 2023
December 1, 2022

B2B payments are facing an exciting trend in the space, as vendors continue to innovate to offer new and better solutions for this $30 trillion industry. According to PaymentsJournal, continuous improvements in B2B payments are largely driven by the complicated infrastructures necessary for international payments and a pressing need for greater flexibility. With a company […]

Read More
COP27 drew focused attention on the role of the built environment in global carbon emissions. Where does AEC need to start to make a change?
Is the COP27 Focus on AEC Carbon Emissions Telling the Whole Story?
December 1, 2022

Construction sustainability continues to be an emphasis for international leaders. COP27, the UN’s gathering of more than 90 heads of state and 35,000 delegates from 190 countries, convened earlier in early November to discuss unified action against climate change and which industries need to take on a bulk of the responsibility to adjust operations and […]

Read More