Besieged by the dual threat of price and wage inflation

Voice of the CFO | September 2022

KPMG hosted the latest in a series of peer group discussions during which chief financial officers (CFOs) explored key points of interest impacting organizations across virtually every market sector. The meeting focused on expectations for the current inflationary economic environment, as well as how firms are approaching financial planning through the end of 2022 and into 2023.

Key takeaways

The downdraft in prices we’ve seen at the pump recently strengthened consumer spending somewhat over the summer, but not enough to impact the trajectory of the economy.
With electric and gas prices surging, 20 million American households aren’t paying their utility bills right now.
Inflation is costing the average consumer an additional $460 per month to purchase the same basket of goods and services as last year.
CFOs are working to address structural labor issues with creative compensation arrangements and by paying closer attention to insights gleaned from key employee exit interviews.
Companies are taking a more disruptive approach to enterprise planning in an effort to make faster connections across the business and eliminate planning-related bottlenecks.

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