Inflation is accelerating around the world—here’s how your organization can respond

Adapt your approach ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ .

Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   New from McKinsey & Company Your inflation playbook In the face of US inflation rates not seen since the 1980s, the Federal Reserve increased its benchmark interest rate by half a percentage point in May—and markets expect the central bank to continue raising rates aggressively in the coming months. In the eurozone and the United Kingdom, the consumer price index this month rose to record highs amid concerns over the ongoing war in Ukraine and subsequent impact on Europe's energy supply. How will this inflationary environment affect customers, suppliers, and shareholders? And how can business leaders guide their management teams, employees, boards, and external stakeholders through this period of uncertainty? Explore these insights to get up to speed on the latest, and dive deeper on ways your organization can respond, including: how CEOs can manage the impact of the current higher-inflation environment successfully and establish a new level of organizational resilience why companies should adjust their business operations quickly and decisively to reduce their exposure to rising costs five key ways for companies to adapt to sales-led pricing while maintaining long-term value Read more Navigating inflation: A new playbook for CEOs Few chief executives have faced the challenge of leading a company through an inflationary spike like today's. Lessons from strong leaders and bold action can help CEOs make the decisions that only they can make. Make smart moves   How business operations can respond to price increases: A CEO guide Companies need better tools to tackle rising prices. CEOs can look for them across their business operations. Understand inflation   Five ways to ADAPT pricing to inflation Price adjustments due to inflation call for nuanced approaches that, when done well, can strengthen customer relationships and overall margins. Address pain points   Global Economics Intelligence executive summary, April 2022 Amidst high inflation and the continuing war in Ukraine, strong demand persists; forecasting institutions trim growth estimates. Understand worldwide trends   The $773 billion question: Inflation's impact on defense spending How will the Defense Department deal with possible long-term inflation and price increases for its most important programs? Understand the effects   Consumer prices are rising fast, and healthcare isn't far behind To grapple with the consequences of healthcare inflation, providers and services organizations should refocus efforts to ensure rigorous execution and resilience. Prepare for difficult times   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   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   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 Operations alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007