Inflation knocks businesses off balance as recovery slows

Companies will soon start reporting their latest quarterly financial results and investors have been warned that inflation is going to sting. Retailers, auto makers and a wide range of manufacturers have all warned investors that a supply chain crunch and higher raw materials costs are adding to expenses and hurting revenue. Many companies were able to pass off higher costs to consumers during the first half of the year without much fuss as the economy roared back from pandemic. But the recovery has slowed, and higher inflation could linger longer than expected.