U.S. inflation reached a 40-year high in January, rising to a 7.5% annual rate. Prices rose sharply for food, vehicles, shelter and electricity.
Businesses are scrambling to keep up with rising material and labor costs, also stubborn supply chain snarls. Annual wage growth was 5.1% in January, the highest since 2001. Alex Mishkit launched her salon Alex Cher Beauty a year ago. Since then, she has increased prices to keep up with rising supply costs. The cost of nitrile gloves rose as much as 30%, then the price of waxing sticks shot up, followed by the price of wax itself. In a recent Conference Board survey of 133 large companies, many CEOs cited the need to raise prices to cover wage increases.
In inflationary times, how can companies hold costs down? MOSIMTEC simulation modeling can help. Explore ways to change the cost structure, reduce costs of key inputs and evaluate/test cost levers. Become more cost effective by refreshing the business model, improving the supply chain, modifying production lines or automating functions. Outdo competitors with creative cost cutting changes and do it quickly, cost effectively and virtually before making real world changes. MOSIMTEC can help you futureproof and inflation-proof your business.
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Read more here: https://www.wsj.com/articles/us-inflation-consumer-price-index-january-2022-11644452274