If local manufactures are unable to meet demand, wholesalers will start importing goods. That in turn will lead to more demand for foreign currencies and a weaker $ as a result.
Just about everything is getting more expensive in the United States
Just about everything is getting more expensive in the United States as the stimulus-fueled economy rebounds, sending Americans back to shops and restaurants. But the pandemic is far from over, and supply-chain woes mean supply isn't meeting demand -- sending prices even higher. US consumer prices in April increased 4.2% from a year earlier, more than the 3.6% economists had predicted, the Bureau of Labor Statistics reported Wednesday. It was the biggest 12-month increase since September 2008. Prices rose 0.8% on a seasonally adjusted basis between March and April -- also more than analysts had expected. Price ... (full story)