Inflation hit a 40-year high—here's how companies can react

What surging prices mean for your organization ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ .

Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   New from McKinsey & Company How to mitigate the effects of inflation Inflation hit a 40-year high last month, leaping 7 percent from the year prior. As households grapple with greater price hikes for groceries and other essentials, companies are contending with booming consumer demand and persistent supply-chain backlogs, keeping prices elevated. But how can companies determine that short-term price increases are fair? And how should they prepare to deal with the long-term consequences of inflationary markets? Explore these recent insights to get up to speed, and dive deeper on key topics, including: how companies can rebuild their price-negotiation capabilities and their long-term resilience three imperatives for CEOs aiming to step up amid a complex, uncertain, and rapidly evolving environment six proven strategies to release cash from the balance sheet why executives view mounting fallout on the supply chain and inflation as the biggest threats to growth in their countries’ economies Read more How to deal with price increases in this inflationary market The return of inflation makes price negotiation a more demanding—and strategically critical—capability. Build long-term resilience   The CEO: Architect of the new operations agenda To thrive in a volatile and unpredictable postpandemic economy, companies need smarter, faster, more agile business operations. That requires big changes—and commitment from the very top of the organization. 3 operations imperatives   The coronavirus effect on global economic sentiment, December 2021 Executive sentiment ends the year on a generally positive note, with most survey respondents expecting 2022 to bring better economic conditions despite heightened risks from the pandemic and inflation. Get updated   CEO Excellence What if the world’s highest-performing CEOs held a master class to share the skills and practices that have driven their success over the years? Coming March 15, this authoritative new #CEOExcellenceBook outlines the six mindsets that distinguish the best leaders from the rest, based on rigorous research across more than 20 years’ worth of data on 7,800 CEOs from 3,500 public companies across 70 countries and 24 industries. Preorder your copy now   Unlocking cash from your balance sheet Opportunities to free up cash may be hiding in plain sight. Here are six strategies for releasing cash from your balance sheet. 6 strategies   Winning the race with inflation: The pricing opportunity for industrial companies As inflation rises, industrial companies must take a new look at pricing. Try a new approach   Responding to inflation and volatility: Time for procurement to lead A digital nerve center can help procurement teams collaborate better and act faster during turbulence. Take action   Ten steps retailers can take to shock-proof their supply chains In a seemingly 'no win' environment, retailers can take a two-speed approach to address the current shocks and build a more resilient foundation for the future. Lay the groundwork   Pandemic price spikes: What is a CFO’s next move? Concerns about “pandemic price spikes” of manufacturing inputs have shaken many business leaders. Read the LinkedIn post   What's going on with shipping rates? McKinsey's Steve Saxon and Jaana Remes discuss why container shipping costs are surging and give their take on what lies ahead for the industry. Watch the video   Defying cost volatility: A strategic pricing response While input cost increases and volatility are challenging, they present an opportunity to improve pricing and institutionalize best practices—but margins will likely suffer if these are not executed in a strategic way. 4 steps to consider   Getting real about mitigating price inflation Category managers can respond to inflation—and save their companies a lot of money in the months ahead. 5 things to do now   To see more essential reading on topics that matter, visit McKinsey Themes. — Curated by Eleni Kostopoulos, a digital publishing manager in New York Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here. This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to our Marketing & Sales alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007