Inflation Whiff Kiev is not just battling a Russian-led insurrection in the Donbas but is also trying to fight food inflation, which hit 11.3 percent in 2021 and 13.3 percent in December alone. Its solution is price controls, limiting the margin earned on trading major food products to 10 percent. Meanwhile, the price of gas used to fertilize, process and transport food has climbed ten-fold over the past year. Price controls are an old tactic that most economists consider counterproductive. Since price is the primary means for regulating supply and demand, artificially suppressing the price increases demand for what otherwise might be a limited supply. The result is increased shortages and likely the creation of a black market where higher...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.