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 the middle of 2021, including the described as “transitory”, but from the point of view of CEOs, this trend will remain at least until 2023, published The Wall Street Journal.
Data from The Conference Board reveal that for the 55% of CEOs worldwide fear price pressure will remain high until mid-2023, or more.
According to the information, inflation is now the second external threat for companies, compared to the position 22 that he occupied last year.
While the top concern for CEOs remains the Covid disruptions- 19.
The Bureau of Labor Statistics (BLS) reported Thursday that consumer prices soared 7% in December from a year earlier, the largest increase since June of 900.
For a 95% of the CEOs of the manufacturing sector consulted by The Conference Board, consider that in 2022 they face a upward pressure on the prices of raw materials, wages and other inputs.
While citing disruptions in the supply chain, worker shortages and turbulent energy prices as their main concerns.
The BLS also reported that producer prices increased by 9.7% in 2021, the fastest pace since the government started tracking them in 2010. However, between November and December, producer prices rose by only 0.2%, which represents 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 passing the increase on to consumers, who will ultimately have to face higher prices.
The survey was conducted with more than 900 CEOs and was carried out between October and November of 2021.
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