Chart Source:  US Inflation Calculator

The US inflation rate accelerated to 7% for December 2021.  That’s the highest inflation has been in 40 years.     Cost pressures are impacting out of home.

• Vinyl input costs are up more than 30% from pre pandemic levels.
• Shipping costs are up nearly 50% when a container can be found, although Billboard Insider hears  that the container shortage may have started to ease.
• Hot rolled steel prices are up 65% from pre-covid levels and relief from cheaper imports won’t occur due to tariffs.
• A tight labor market means employers have to pay more to find and retain workers.

Billboard Insider’s take:  Inflation is here, due to supply chain issues created by covid and bad political decisions (e.g. a second round of covid stimulus just as the economy was taking off and tariffs which prevent imports from easing price pressures).  Expect to see price increases from vendors and expect to quote life shortened due to inflation uncertainty.   You need ask for a price increase as ad contracts renew to help recoup increased vendor costs.

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