inflation rates

How Does Inflation Affect Businesses?

Inflation can affect businesses in various ways:
Costs: Rising inflation often leads to increased costs for raw materials, labor, and other inputs, which can squeeze profit margins.
Pricing Strategies: Businesses may need to adjust their pricing strategies to maintain profitability, which can impact consumer demand.
Interest Rates: Central banks often raise interest rates to combat inflation, which can increase borrowing costs for businesses and affect capital investment.

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