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03 April 2026 / Quick Take
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Copy LinkAs the Middle East conflict pushes up energy, logistics, and input costs, European companies are being forced to decide how much of the shock they can pass through to customers and how much they absorb themselves. Recent survey results suggest that while some firms retain pricing flexibility, many face clear limits on their ability to protect margins and are passing on most or some costs to consumers.
European companies are entering a complex environment, where rising input costs are rapidly translating into price adjustments.
Most executives surveyed during a recent Economic Outlook and Middle East briefing noted that their firms are planning to pass through cost increases to consumers. 29% of respondents indicated that their companies are passing most of the costs to consumers, while 31% indicated that they are passing on some cost. At the same time, 20% are absorbing the majority of cost pressures internally, directly impacting margins, and 18% say it is too early to determine their response. Only 2% are not experiencing significant cost increases.
Consistent with broader findings, companies are prioritizing financial and operati
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