Inflation is creating widespread uncertainty
US inflation has reached its highest point in nearly 40 years, as the COVID-19 pandemic has caused both supply and demand-side shocks, with a disrupted supply chain, unprecedented levels of government fiscal stimulus, shifts in consumer spending, a decline in labor force participation, and persistent business uncertainty.
Inflation has been relatively low for so long that few US executives have managed organizations through periods of high inflation (or deflation). With little direct experience to guide them and growing uncertainty about what the future may hold, many executives are asking:
What can leaders do to prepare their organizations to be resilient no matter what the future of inflation holds?
In close collaboration with Deloitte’s US and global economists, we have identified four scenarios—stories about the future designed to spark insight and spot opportunity and risk—that describe different ways inflation could evolve between now and late 2024. For each scenario, we have also developed implications and recommendations for executives across key business areas.
