Record US inflation sparks concern at Pentagon

Defense One: Pentagon Prepares for Arms Cost Rise Amid Record Inflation

years of inflation in the US. The portal Defense One writes about this.

According to the sources of the publication, the rate of inflation is forcing the Pentagon leadership to prepare for higher wages and an increase in the cost of weapons. As Robert Hale, who worked as the agency's auditor during Barack Obama's presidency, explained, higher inflation will cause contractors to pay their employees more. In turn, this means that weapons prices will also rise.

Defense companies that have already faced supply chain problems due to the COVID-19 pandemic also warned that inflation could lead to an increase in the cost of weapons on some current and future contracts. At the same time, Pentagon financial inspector Mike McCord noted that this will not happen overnight.

Last week it became known that the consumer price index in the United States rose by 6.2 percent on an annualized basis. This is the highest increase in more than 30 years – the jump in prices was the highest since 1991.

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