The percentage of companies planning to raise the prices of their goods and services in the next 12 months increased to 71% from 40% a year ago; at the same time, 5% want to cut prices, according to an International Business Report study by Grant Thornton. The net ratio is 66 percentage points. and this is the highest result in the 11-year history of the study. This indicator was in the range of 19-41 percentage points in previous editions.
“Importantly, so far our index of firms’ propensity to raise prices has been quite well correlated with the later actual inflation readings. If this correlation were to hold, it could mean an increase in inflation to around 9% in the next 12 months,” according to the report.
Among the 22 analyzed large economies in the world, a higher percentage of companies planning pay rises than in Poland was recorded in Turkey – the net ratio (the percentage of companies announcing pay rises minus those planning cuts) was 72 percentage points.
65% of the surveyed heads of medium and large enterprises declare that high energy costs are for them a “strong” or “very strong” barrier to development.
“The barrier of high labor costs is growing in a similar way – the percentage of bosses pointing to this barrier has increased since 2016 from 43% to the present 67%” according to the report.
Every year, the global survey is conducted among 10,000 people. owners or board members of medium and large enterprises in the world. In Poland, since 2020, the survey is carried out using the CATI method (telephone interviews) by the Biostat company, every year among the owner and management board members of 100 medium and large enterprises. The last edition of the study was conducted in September-October 2021.
Source: Grant Thornton and ISBnews
