#118 Concept: Inflation

The International Business Podcast

If you work across time zones, borders and cultures, this is the show for you. In the "Concept" series, Leo aims at defining a topic in international business. These are shorter episodes to illustrate key concepts in this discipline.

Today, we talk about inflation.

Inflation is an essential economic principle that denotes the overall rise in the costs of goods and services within an economy over time. This phenomenon results in a decline in the purchasing power of money, indicating that consumers can acquire fewer items with the same amount of currency.

Inflation is typically measured using indices such as the Consumer Price Index (CPI), which tracks the average price changes in a basket of selected goods and services over a specified period, typically on an annual basis.

In today’s connected global economy, inflation plays a big role in international business. Companies that work across borders have to deal with different inflation rates, which can impact how they set prices, their profit margins, and how competitive they are overall.

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Sources for further analysis:

- Supply Chain and Inflation: Issues and Impacts

- Ford warns investors of an extra $1 billion in supply chain costs.

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