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Bloomberg
Nestle SA Chief Financial Officer Francois-Xavier Roger foresees a challenging six months before inflation starts to ease in the second half of 2023.
“We are likely going to go into a recession — we know that the next six months are probably going to be complicated and difficult,†the executive at the maker of Nescafé and KitKat said in an interview. That will trigger a slowdown in consumption, he added.
Consumer-goods groups like Nestle have been grappling
with sharply higher input costs in 2022. Many have pushed through record price hikes, denting demand for their products. Rate hikes in major economies such as the US, the euro-area countries and Britain are an additional strain on households.
Cost increases for commodities such as palm oil, coffee and wheat have eased off recently.