After three years of relentless uncertainty and downright pessimism over the outlook for business, company executives are facing a brand new problem: How to deal with a surging economy and the rising costs that come along with it. Materials are already more expensive. Inventories will have to be built up to meet new demand. And hiring costs will pick up as the labor markets tighten, especially given the growing pressure from benefits, driven mainly by health care. How companies cope with rising costs will be crucial to the outlooks for inflation and Federal Reserve policy.
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