G-7 Finance Chiefs Vow to Avert Future Supply-Chain Problems

(Bloomberg) -- The finance ministers of the Group of Seven major economies pledged greater cooperation to fix global supply chain issues that have caused shortages and led to a surge in inflation. 

Consumer prices are soaring across the world due to supply disruptions brought on by shipping problems, shortages of manufactured components and higher energy prices caused by the pandemic. In the U.S., inflation has hit its highest level since 1982; it’s at a record 4.9% in the euro area.

In the final communique of the U.K.’s presidency from G-7 finance ministers and central bank governors, Chancellor of the Exchequer Rishi Sunak said the group would look to anticipate and avoid a future supply crunch.

G-7 ministers and governors “exchanged views on how to promote greater resilience of supply chains and ways to build a more accurate picture of possible future disruptions,” the U.K. Treasury said.

The group also agreed “to remain vigilant to new variants of Covid-19” and to hold more regular policy discussions to reduce carbon emissions. The U.K. hands the presidency over to Germany on Jan. 1.

G-7 finance chiefs also called on their member nations to address a “shortfall” in the development of antibiotics with “a range of market incentive options,” according to a statement by U.S. Treasury Secretary Janet Yellen on Monday’s call.

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