I hear a lot about inflation, so I wanted to check on the latest numbers. Inflation calculated from one common measure, the Consumer Price Index (CPI), hit an annual rate of 8.6% in May 2022. Some economic forecasters expect double-digit inflation soon. What can and should we do to equip our businesses to survive?
As I have indicated previously, I am not an economist, accountant or financial advisor. I did, however, have a great financial advisor when running a manufacturing company in the late 1970s and early 1980s. Inflation in March 1980 hit an annualized rate of 14.8%, so I can offer some guidance from a manager/owner perspective. Every business differs but all of them have tools to leverage inflation and try to limit the downsides.