New York Fed reports rise in supply chain pressures for September

The Federal Reserve Bank of New York reported that supply chain pressures saw a modest increase in September compared to August. The bank's Global Supply Chain Pressure Index rose to 1.28 in September from an upwardly revised 1.20 in August. The report did not specify the factors behind this rise, but the index is designed to measure the functioning of global supply chains.

Despite the increase in September, supply chain pressures remain lower than their peak of 1.81 in May. This peak, while elevated, was significantly below the 4.43 reading recorded in December 2021, which reflected the widespread disruptions caused by the COVID-19 pandemic.

Elevated supply chain pressures can contribute to rising inflation. The Federal Reserve recently raised its interest rate target and plans another increase by the end of the year to help bring inflation back to its 2% target.