Construction material prices rose in 11 of the 12 months of last year, according to figures published by the government, while analysts have predicted further inflationary pressure as a result of the war in Ukraine and the breakdown of the West’s relationship with Moscow.
Now, according to the AJ’s sister title Construction News, the CLC working group has issued its latest update, warning that inflation is a ‘major concern’ and supplies could be constrained in a number of areas.
“There are reports that some suppliers are only willing to hold quotes for tender prices for 24 hours,” working group co-chairs John Newcomb and Peter Caplehorn told the outlets. “The resulting uncertainty is leading some contractors to pause before entering fixed-price or long-term contracts.”
In the UK, the rising cost of energy is also affecting construction projects and prices, adding to the delays, according to the working group, which noted: “The volatility of energy prices has begun impacting the market. Some manufacturers of energy-intensive products are now warning of surcharges linked to energy costs.”
Add on a global shipping and supply chain crisis, and the West is about to enter the perfect storm of economic collapse: Hyperinflation, a dearth of goods and uncontrollable prices, none of which is going to be solved anytime soon, according to a Tuesday report by private intelligence firm Forward Observer.
“Republican re-election campaigns are centered around inflation as the top issue. In campaign material, Democrats are shying away from the 8.54% inflation rate, mentioning the economic situation six times less than their Republican challengers. White House economic advisers said current supply chain problems would ‘outlast’ the pandemic, worsening inflation concerns,” the report said.
An analyst comment accompanying the report paints a bleaker picture: “Voters are unlikely to feel any substantive relief from inflation before the midterms. Political advertising is likely to highlight ‘disconnected’ politicians who are untouched by economic concerns like ‘everyday Americans.’ Combined with immigration worries, the Democrats are highly unlikely to retain control of the House or Senate. Notably, a Republican Congress will face difficulty in undoing any Biden administration policies as legislation will face an executive veto.”
Adding to worries about ongoing supply chain issues is China’s “zero COVID” policy, which most recently has forced the closure of a major metropolis, Shanghai, shutting down manufacturing again as well as import and export traffic at one of the country’s biggest ports due to a complete lockdown of the city.
When prices cannot be guaranteed for materials beyond a single day, that is a telltale sign we have entered a period of hyperinflation. Based on all reasonable estimates, things are only going to get worse and the Biden regime has no clue how to fix it.