September 28, 2022: -Inflation in consumer goods persisting as a “new normal” as the global economy undergoes structural changes, Asian business leaders warn.
While increasing interest rates might eventually temper asset prices, deglobalization and decarbonization could support going to drive up costs for everyday goods, said V. Shankar, chief executive of emerging markets investment manager Gateway Partners.
“Inflation is here to remain come perdition or high water, irrespective of what the central banks do because there are a few structural, intractable problems that have led to higher prices,” Shankar said at the Forbes Global CEO Conference in Singapore.
“Despite helicopter money and zero interest rates, the price of goods stayed down for so long because of a vast, reasonable manufacturing agent called China, and the integration of global supply chains.”
That integration is paving the way for cheaper goods. But catalyzed by the pandemic, there are new threats to intertwined global supply chains as countries bringing back manufacturing to their own countries or countries they are friendly with, Shankar added.
In July, U.S. Treasury Secretary Janet Yellen touted the need to increase supply chain resilience through “friend-shoring” by doing business with countries that share values with Washington.
Shankar added that this collapses globalization and increases prices as manufacturing will no longer be based on numbers and cost considerations.
Decarbonization efforts will contribute to higher prices, Shankar said, as there is not enough supply of components for climate-friendly goods to meet demand.
For example, the global production and consumption of graphite for electric vehicle batteries were 1 million tonnes in the previous year, but in 10 years, that could increase to 5 million tonnes. There is no sign where that extra production comes from, Shankar said.
“If you look at the fossil fuel industry, they invest as if we are transitioning to a net-zero economy by 2035, as the renewable industry which invests at a speed of roughly a third of what is required for net-zero by 2050,” he further said.
“There is an inevitable train wreck, and the politics and societal pressures collide with economics. So, inflation is here to stay.”
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
Corporate leaders often navigate turbulent waters where failure is not just a possibility but an inevitable part of the journey …
Corporate leaders play a pivotal role in shaping organizational cultures that embrace diversity and foster inclusivity. How can these …
January 30, 2025: An American Airlines regional jet collided midair with a U.S. Army Black Hawk helicopter near Washington
January 29, 2025: A newly deployed AI chatbot in France has sparked widespread public debate, with concerns over misinformation
January 27, 2025: President Donald Trump’s administration has moved swiftly to dismantle diversity, equity, and inclusion (DEI)
January 23, 2025: A massive wildfire near Los Angeles has engulfed thousands of acres in a matter of hours, forcing tens of thousands to evacuate
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
