Financial Executives Predict Inflation Increase

Results of a new poll of 304 companies report that CFOs are predicting inflation will increase by 3.5 percent during 2000. This and other observations were made by financial officers in a survey conducted by the Financial Executives Institute and the Duke University School of Business.

The basis for this increase, up from 2.2 percent predicted at the beginning of the year, is the rising cost for oil. As oil prices continue to increase, the thinking is that companies will increase the cost of their own products to compensate for the additional energy costs.

Another inflationary factor is health care, which is expected to continue increasing at a mean rate of eight percent.

In other areas, the survey revealed that security still is a hot topic among companies, even though only 13 percent reported their own company had experienced a security breach. A more alarming statistic is the 30 percent of high-tech firms affected by some mishap in electronic security.

You may like these other stories...

For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.