Global Survey of Business Executives: Inflation and Pricing
The McKinsey Quarterly -- Purchasing, 12/20/2005 2:00:00 AM
A McKinsey Global Survey asked executives from 134 countries about their expectations for inflation in their countries and industries.
Nearly half expect their national inflation rate to rise by at least one percentage point in the coming year, although one-fifth of the respondents from emerging markets expect inflation to fall. Respondents identified energy cost as the number-one contributor to higher inflation; they cited real-estate prices, a tighter job market, and stronger consumer demand as well. Fifty-nine percent of the executives do not expect to be able to raise prices in the coming year; executives from smaller companies anticipate having more pricing power than those from the largest companies.
This article includes the following exhibits:
* Exhibit 1: Perceived causes of inflation
* Exhibit 2: Respondents' inflation expectations by region
* Exhibit 3: Respondents' expectations for pricing power
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