Inflation and recession: the commercial impact

Did you find last two year’s negotiations tough? Then brace yourself for the next round. So far, the direction has been clear: prices needed to increase to absorb the costs of disruptions in global supply chains. Guarantee of supply was the most important value-driver for many customers, which meant that sellers could successfully pass on their cost increases. However, as a second wave of cost increases has hit the markets in the form of rising energy cost, and as consumers are demanding higher wages as a result, a wage-price spiral is beginning to take shape. This means high inflation rates will be with us for some time and companies should prepare their commercial strategy accordingly.

Purchasing power of consumers is being hit, and consumers are increasingly feeling the economic pain. The Dutch CBS recorded a new inflation record in September of 17.1% annually. Additionally, the shift from raw materials to energy- and wage costs results in a broader…