Global Survey of Business Executives: Inflation and Pricing

The McKinsey Quarterly -- Purchasing, 12/20/2005

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

Click here for the complete article from The McKinsey Quarterly.

Free, one-time registration is required.

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

• Topics
• Author

Related Content

• Purchasing manager's Survival Guide
  
• How to: Implement strategic sourcing
  
• How to: Integrate suppliers
  
• How to cut energy costs
  
• Procurement strategies for cutting energy costs
  

By This Author

• Measuring performance in services
• The right service strategies for product companies
• Making China your second home market: An interview with the CEO of Danfoss
• When IT's customers are external
• Shaking up the labor movement: An interview with the head of the Service Employees International Union
• » MORE

Sponsored Links