Inflation

In this edition of BCG's Executive Perspectives, we examine the turbulent forces that are bearing down on business leaders today, so that they can understand where opportunities exist amid the uncertainty.

Philipp Carlsson-Szlezak, BCG’s global chief economist, is concerned about inflation but not yet willing to say the world is in a new era of constantly spiraling prices and collapsing asset prices.

This recently enacted legislation is likely to have profound, far-reaching effects on energy systems, supply chains, industries, trade, and beyond—both within the US and across the globe.

Investors believe a recession is likely because of the Federal Reserve’s actions on interest rates, but they are most concerned about prolonged inflation.

Maybe, but that doesn’t mean it’s time to panic.

Policymakers are engaged in a delicate balancing act. Executives should focus on four priorities as they navigate macroeconomic risks.

Higher inflation means higher stress and insecurity. Can we lower one without the other? Listen to the American Metamorphosis podcast.

Uncertainty over the war, the pandemic, inflation, and the economy is forcing consumers to focus more of their spending on essentials and less on discretionary expenses.

Charging different prices is often fairer than charging everyone the same price. Companies should take steps to educate customers and win their support for this approach.

Today’s economy is battered by idiosyncratic stress, geopolitical conflict, and extreme uncertainty. What needs to be done?

Companies should stay flexible, reassessing their outlooks and tactics as events unfold. Nevertheless, there are clear dos and don’ts that all executives should heed amid the uncertainty.

A common narrative is that well-behaved inflation is behind us and that fiscal policy is to blame. But abandoning fiscal investment in the name of inflation risk would be misguided.

Those who tackle inflation strategically can protect their businesses and customers while building competitive advantage. Here’s what it will take.

Industry players will have to make bold moves—related to pricing, portfolios, and offers—and adopt a precise change management strategy to weather the current volatility.

Brands have a powerful opportunity to increase the bottom line in an uncertain economic environment. Here’s how.