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

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.