Basu said the surge in prices is probably temporary as suppliers work to boost capacity and bolster output, a dynamic that eventually results in a downward shift in prices.
“Operations at input producers should also become smoother over time as staff is brought back and standard operating procedures are reestablished,” he said.
Nevertheless, some of the inflationary pressure contractors and others are experiencing may not be over soon, he said, and inflation and interest rates may not be as low during the decade ahead as they were during the decade leading up to the pandemic.
