Inflation in the U.S. has already reached levels of around 9 percent. But now there are increasing signs that things are going backwards again.
Rates of price increases have skyrocketed in recent months. In the U.S., inflation had already reached 9.1 percent in June. Now, however, the figures for July show that it has fallen to 8.5 percent, and analysts had actually expected somewhat more. The data therefore allow us to breathe a sigh of relief.
The statements made by some company bosses also give cause for confidence that the global price increases are slowly coming to an end. These statements are significant because company managers have a broad insight into the matter. Ultimately, they are also the ones who implement the price increases in their products.
Zenith exceeded
«My guess is that we have already passed the peak in inflation,» said Tesla CEO Elon Musk, according to the Wall Street Journal. He thinks price increases will decline significantly toward the end of the year. «We see prices of some commodities coming down markedly,» Musk said.
From Goldman Sachs CEO David Solomon it was said that «our economists think inflation is coming down significantly in the second half of the year.» Caterpillar CEO Jim Umpleby said that his group has seen significant improvement in its logistics chains. While it still «varies somewhat from component to component,» he said.
«Sometimes it’s this part, sometimes it’s that,» he stressed – referring to a possible easing on the price front.
No comparison with the previous year
The chief executive of power equipment maker Eaton, Craig Arnold, said something similar. «The situation with the supply bottlenecks we have been dealing with for about a year has improved noticeably,» he said. However, he said that the company was «still having great difficulty when it came to electronic components and anything to do with semiconductors.»
From the Netflix boss came the statement that his company is currently seeing only one million subscribers turn their backs on the streaming provider instead of two. «Our joy is therefore still limited, but it is a less-bad result,» highlighted the top manager.
Price battles in the offing
The head of the sports brand Under Amour emphasized that the situation is ‘anything but easy’ for the industry. Especially as dwindling consumer confidence will lead to the fact that there will be a great many discount promotions. «We will also participate in the battle,» the top manager explained. As a result, demonetization should also decrease.
And from the group head AMC Entertainment Adam Aron it was said that Hollywood has realized how much money can be made in the case when movies are first aired in theaters. That’s why Hollywood and Wall Street are moving away from the previously booming streaming world, he stressed. Thus, there will simply be a shift from Netflix & Co. and back into the movie theaters.
Switzerland as a special case
However, many economists currently believe that the price increases have not yet been defeated. In Switzerland, however, there is no need to worry too much about the whole issue, because the high prices abroad – when importing – are weakening with the strong franc.
08/15/2022/kut./ena.
