TWIC Original - Inflation

Wednesday, June 19 2024

This week in
Consulting

The Inflation Horizon: What Lies Ahead for the Economy

Editorial

In the United States, inflation peaked at 9.1 percent in June 2022, but recent months have seen a welcome slowdown. This trend is mirrored across other major economies, including Europe, Japan, and the United Kingdom.

The deceleration of inflation has provided some much-needed relief for businesses, particularly as input costs begin to stabilize. However, the reprieve is not universal. Key commodities in the food and beverage sector continue to command high prices, squeezing profit margins for companies in this space.

Amid these concerns, a debate is brewing among economists. Some argue that fears of runaway inflation may be overblown. They point to the resilient growth outlook for the US economy,

In this edition of “This Week in Consulting,” we delve into the multifaceted issue of inflation, examining its diverse impacts across different sectors. We explore how inflation, particularly in essential sectors like food and energy, continues to be a formidable challenge. The path to navigating these economic uncertainties lies in strategic adaptation and forward-thinking planning.

Dive into the articles ahead—they’re packed with valuable insights on the challenges and strategies related to inflation. As you read, don’t hesitate to share your thoughts in the comments. Your feedback is essential as we navigate these complex economic times together.

Laurent THOMAS

Laurent THOMAS

Chairman Consulting Quest

This week’s must read

In this edition of This Week in Consulting, we delve into the multifaceted issue of inflation, examining its diverse impacts across different sectors, and how inflation in essential sectors continues to be a formidable challenge.

This article by RSM highlights that despite easing inflation, food and beverage companies face profit margin challenges due to high costs. M&A opportunities can help offset pricing pressures and integrate efficient technologies to sustain growth and competitiveness.

Karen Galivan, Peter Cadigan and Thomas Hamill, @RSM

This week’s media

In this insightful Goldman Sachs video, Chief Economist David Mericle elaborates on why concerns about overheating inflation are exaggerated and provides an in-depth analysis of why the outlook for US economic growth continues to remain relatively robust and promising.

Thought Leadership

Analysys Mason’s article forecasts economic impacts on CEE’s telecoms, urging DSL to FTTP migration amid inflation. By 2027, FTTP/B will dominate with 67% market share, driven by network upgrades and government subsidies for remote connectivity.

Julia Martusewicz-Kulinska, @Analysys Mason

McKinsey’s article examines global inflation trends: from a spike in mid-2022 to recent moderation, predicting long-term rates around 2.5%. It explores causes, historical contexts, measurement methods, and strategies for businesses to navigate inflationary pressures effectively.

Ondrej Burkacky, Axel Karlsson, Fernando Perez, Emily Reasor and Daniel Swan, @McKinsey

 

This article by Comco Consulting highlights how inflation, especially in food and energy, threatens the business model of sectors like food distribution. It advises companies on strategies to navigate through rising costs and economic uncertainties effectively.

Alice Roux, @Comco Consulting

Deloitte’s article analyzes the lingering effects of US inflation since mid-2022. Despite easing to 3%, consumer caution persists, influencing financial well-being and spending. Historical trends suggest full adjustment may take up to two years.

Stephen Rogers, Anthony Waelter and Leon Pieters, @Deloitte

This week’s consulting news selection

 

Keystone Partners, a Silver Oak Services Partners LLC portfolio company, announced that it has acquired The Ayers Group, a leader in executive coaching, leadership development and outplacement services, from Kelly Services, Inc.|@Keystone Partners

Mercer, a business of Marsh McLennan and a global leader in redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being, has announced that it reached an agreement to acquire Cardano.|@Mercer

ZS, a global management consulting and technology firm, announced that it has acquired Digital Additive, a leading Salesforce digital marketing agency that specializes in helping businesses leverage the Salesforce Marketing Cloud ecosystem to build data-driven, personalized marketing campaigns and deliver impactful results.|@ZS

Devoteam, a tech consulting firm specialising in Cloud platforms, cybersecurity, AI, and sustainability, has announced the acquisition of Ubertas Consulting, a leading UK-based AWS consultancy.|@Devoteam

Laurent Thomas
Chairman and Co-founder at  | + posts

Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.

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