Is inflation continuing to soar? Survey shows that 70% of US companies have increased labor costs

According to a survey published by the American Association for Global Business Economics (NABE), economists estimate that in the first quarter of this year, employment costs for up to 70% of US companies will rise, reaching the highest level in history.

　　NABE conducted a survey of 84 economists, and about 71% believe that corporate employment costs will continue to rise in the second quarter.

　　The rise in corporate labor costs is one of the factors driving inflation, as most companies will choose to pass on higher costs to consumers and have successfully done so.

　　According to the survey, about 45% of respondents believe that companies have passed on part of the price pressure to consumers, while 15% believe that companies will let consumers bear all or almost all of the price pressure.

　　Nearly half of economists expect the US economy to be 25% or less likely to fall into recession in the next year. About 13% think a recession is more than 50% likely.

　　The US is at its highest level of inflation in 40 years. According to data released this month, the US consumer price index (CPI) rose 8.5% year on year in March, continuing to hit a new high since December 1981.

　　The Federal Reserve pointed out in the Beige Book report released last week that US inflationary pressure is still strong, and companies continue to suffer from a backlog in the supply chain, tight labor markets, and rising investment costs.

　　The report found that companies continue to pass on price pressure to consumers. A large percentage of enterprises plan to increase sales prices in the next few months, and the proportion is still rising. Some employers have complained that it is still difficult for them to recruit and retain employees even after increasing wages.

　　Some companies have even said they are considering automation to cope with increasing wage pressure and labor shortages. However, a small number of companies also said that the strong pace of wage growth has begun to slow down.