Inflation goes long, until mid-2023 according to global CEOS
The president of the Federal Reserve System, Jerome Powell, commented at the end of the previous year that he considered that inflation would remain until mid-2022, he even described it as “transitory”, but since the From the CEOs’ perspective, this trend will continue until at least 2023.published The Wall Street Journal.
Data from The Conference Board reveal that for the 55% of CEOs around the world fear that price pressure will remain high until mid-2023or more.
According to the information, inflation is now the second external threat to businesscompared to 22nd place last year.
While the primary concern for CEOs remains the interruptions due to Covid-19.
The Bureau of Labor Statistics (BLS) reported Thursday that consumer prices soared 7% in December from a year earlier, the biggest increase since June 1982.
For 95% of the CEOs of the manufacturing sector consulted by The Conference Board, they consider that in 2022 they face a upward pressure on prices of raw materials, wages and other inputs.
While they pointed out how their top concerns supply chain disruptions, worker shortages and turbulent energy prices.
The BLS further reported that the production prices increased by 9.7% in 2021the fastest pace since the government began tracking them in 2010. However, between November and December producer prices rose just 0.2%, representing the smallest month-on-month increase since November 2020.
Another relevant piece of information from The Conference Board survey indicates that less than 40% of CEOs indicated that their companies are “well prepared” for an “inflation-related crisis” and that they will face it by cutting costs and transferring the increase to consumers, who will ultimately have to face higher prices.
The survey was carried out among more than 900 CEOs and was carried out between October and November 2021.
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