U.S. businesses should expect to see inflation continue to rise, according to S&P Global Market Intelligence.
In fact, 40% of U.S. businesses polled report that prices of their products are rising 2.4 times year-over-year. In the same period, those reporting fall in prices have dropped to just 4% from 16% a year ago.
From S&P Global:
- Manufacturing (63%) and retail (58%) industries continue to lead all industries in experiencing rising prices, but other industries such as finance industry (50%) are also seeing impact of inflation.
- 52% of U.S. businesses expect prices of their products to continue rising in 2022, and only 3% expect them to decrease. Nearly 50% or more businesses in all covered industries except software and IT services (25%) are expecting increase in product prices.
- Global supply chain disruption, rising commodity prices and labor shortage were the Top 3 reasons why businesses believed that prices were going up.
- U.S. inflation was termed as the third biggest macroeconomic threat to sales by businesses after skills shortage and supply chain disruption and ahead of COVID-19.