Kearney: U.S. executives cautiously optimistic about end of inflation

The good news is that the current inflationary cycle seems to be nearing its end.

The study finds that executive sentiment about inflation has warmed even as inflationary factors continue to impact larger indicators and the national response. In particular, pricing and supply chain issues continue to be disrupted as businesses get on their feet post-pandemic.

Across executives, not all inflationary sentiment is equal, the study found. Some expressed concern that lower- and middle-income communities feel the worst impact from inflation. However, the gap between CEO and VP views of inflation is shrinking, indicating that there's more agreement about the economic pressures that businesses are facing.

A number of positive executive and operational responses to inflation were noted, including the following:

•Renewed innovation cycles; 
•A reset of stale categories; 
•Shifts away from "traditions; 
•Pricing flexibility; 
• Struggles of competitors; and 
•Investment opportunities, especially in innovation

"While our findings show that core inflation triggers have shifted, they continue to influence economic trends such as unpredictable GDP, an uncertain labor market, and supply chain whiplash," Portell notes. "Nonetheless, executives feel that the end is in sight. While they may be overly optimistic on timing, inflation seems to be evolving into more of a short-term than a long-term problem."

Read the full report here.