Recovery Picks Up Pace, but No End in Sight for Inflation: Fed's Beige Book

• The economic recovery continued to pick up pace, but the dearth of skilled labour and rising input prices are expected to continue in the months ahead, according to the Fed's Beige Book released Wednesday. 
• The central bank’s Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through May. 25, showed that while the economy continued its recovery, inflation and labour supply shortages have not ebbed.  
• Continuing supply chain disruptions have propped up inflation, with many "contacts noting sharp increases in construction and manufacturing raw materials prices. Increases were also noted in freight, packaging, and petrochemicals prices," the report showed. But the strengthening in demand has allowed some businesses in sectors including manufacturers, builders, and transportation to pass much of the cost increases to their customers.

(Source: Investing.com)