CFO Guide

4 Inflation Metrics to Watch Now

Inflation is here, and unless you were managing a business in 1982, you’re not used to planning for it. Inflation averaged just 1.7% in the 10 years prior to 2020 – that is below the Fed’s 2% objective and was a key factor in its loose monetary policy. Inflation jumped to a four-decade high of 7% at the end of 2021, and now the Fed is re-evaluating its policies.

 

For business leaders, this means that tracking external inflation metrics is now a priority, as it allows them to ensure the company is adjusting appropriately to swings in prices of goods and services. Here, we’ll outline the three main measures for tracking the inflation rate provided by the federal government, as well as supplemental indicators that could prove helpful in predicting trends and guiding decisions. 

 

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