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Press Release

Semiconductor Shortages and Vehicle Production and Prices

Recent inflation readings in the United States have been high, but they have been driven in part by components with known supply issues and by components related to the reopening of the economy.

Cleveland Fed researchers Pawel Krolikowski and Kristoph Naggert studied the impact of one bottleneck - semiconductor shortages - on vehicle production and new car prices, which have accelerated since the middle of 2020.

“Our best guess is that these shortages and their effects on new car prices will subside within the next six to nine months,” Krolikowski and Naggert write in a Cleveland Fed Economic Commentary.

Read the Economic Commentary: Semiconductor Shortages and Vehicle Production and Prices

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell,, 513.218.1892