Inflation is a quantitative measure of the overall rise in prices of goods and services over a given period of time.
For example, when annual inflation reaches 6%, a catering company that locked in a 3-year supply contract at fixed prices finds its profit margins eroding — the cost of food, fuel, and staff wages all rise, while revenue stays capped by the contract rate.
Why it matters: It silently erodes purchasing power and margins; businesses must have the pricing power to pass these costs to customers to survive.
.avif)
.svg){kind=small}