A third of global businesses predict the current inflationary environment to continue for more than two years, according to new research from Taulia. Expectations were gloomiest in the UK, with more than two in five (42%) predicting high inflation would last more than two years, while a third (34%) of businesses in Germany, and over a quarter in Singapore (29%) and the US (27%) said the same.
“Inflation is having a profound impact on businesses across the globe, causing supply chain disruption, rising costs, and higher borrowing costs. As a result, businesses are having to increase their budgets to help navigate the storm and set themselves up for future survival and success.”
Half of businesses globally (50%) expect today’s inflationary environment to last between one to two years, and nearly two-fifths (37%) of businesses believe inflation will get worse over the next year.
Just 15% of businesses globally predict the current inflationary pressures to last less than 12 months. US firms are most optimistic about this with over a fifth (21%) saying inflation will last less than 12 months, compared to 11% of UK businesses.
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Tackling inflation is cited as the top challenge businesses expect to face over the next year. As a result, the findings reveal that businesses are increasing their budgets to prepare for economic uncertainty. Compared to 12 months ago, businesses, on average, have increased their budgets by 13%.
Cedric Bru, CEO, Taulia, comments: “Inflation is having a profound impact on businesses across the globe, causing supply chain disruption, rising costs, and higher borrowing costs. As a result, businesses are having to increase their budgets to help navigate the storm and set themselves up for future survival and success.”
SOURCE: BusinessWire