Dealing with unprecedented inflation
Our expert view on the current situation
We are in a period of extreme cost increases – was it first seen as temporary, it now seems that we are not even halfway. On top of ongoing supply chain disruptions and raw material price increases, energy prices are now bringing costs to the next level. On the horizon is a potential next wave caused by wage increases. As price increases trickle down value chains, many end-customers and consumers are still protected, but will be facing steep price increases in coming months and years.
Following a long period of near-zero inflation rates, most companies lack muscle-memory to successfully increase prices – and they are already worn-out from implementing last year’s price increases. Inflation consumes cash, eats margins and lulls managers into a false sense of security as inflated revenues rise – action is needed.
