There is a new way to measure supply chain issues that are partially to blame for consumer price inflation: The Global Supply Chain Pressure Index (GSCPI). Researchers at the New York Federal Reserve invented this new calculation system using over 25 indicators, including, though not limited to, the Baltic Dry Index (BDI) and Harpex index. The GSCPI’s purpose is to provide “a more comprehensive summary of potential disruptions affecting global supply chains,” according to researchers at the New York Federal Reserve. This begs the question: how high is the GSCPI currently? The New York Federal Reserve notes that “more recently, the GSCPI seems to suggest that the global supply chain pressures, while still historically high, have peaked and might start to moderate somewhat going forward.” An article published by American Shipper examines the current measurement of the GSCPI, key pressure indicators, and how researchers were able to create the new scale.
Read the article here.