Retailing in times of soaring inflation: What we know, what we don't know, and a research agenda

Inflation is back – with a vengeance. Following the highly disruptive years of the pandemic, the world has experienced inflation levels not seen for many decades. A “perfect storm” of underlying causes including expansionary monetary and fiscal policies during the pandemic, pent‑up demand, supply-demand imbalances and commodity-driven cost pressures due to unfavorable weather conditions in various regions and Russia's invasion of Ukraine, all conspired to steeply increase consumer price levels around the world. While current inflation levels are not unprecedented (they were even higher in the 1970s and 1980s), the decades-long period of extremely low inflation experienced in most countries means that current inflation rates continue to shock consumers, manufacturers and retailers. Equally, academic research has very little to say about how to conduct marketing in inflationary times, and that is why this paper presents an overview of what we know, what we don't know and what we argue we should know in the form of a research agenda.