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The effects of long-term inflation for the Defense Department

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Understand the effects ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
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AN ARTICLE A DAY, PICKED BY OUR EDITORS
Everyone is dealing with the effects of inflation these days, and the US Department of Defense (DoD) is no exception. The annual inflation rate hit 7 percent at the end of 2021—the highest level since 1982—and some experts believe that prices could continue to rise. If this is the case, the DoD could lose over $100 billion in purchasing power within five years, according to McKinsey models. This poses many risks not only for the DoD, but also many private companies at all levels of the value chain. A new article breaks down what defense industry leaders can do to address these risks as we navigate these uncertain times. You don’t want to miss it.
— Joyce Yoo, digital editor, New York
The $773 billion question: Inflation’s impact on defense spending
 
The $773 billion question: Inflation’s impact on defense spending
How will the Defense Department deal with possible long-term inflation and price increases for its most important programs?
Understand the effects
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:14 - 31 Mar 2022