In the context of economic uncertainty arising from potential changes in tax policy and rising energy prices, the inflation expectations of the public and businesses become a crucial indicator of future economic processes, notes Boris Umanov, a representative of Arilan Energy.
The issue lies not only in the actual changes within the economy but also in their perception. Christopher Carroll, an economics professor at Johns Hopkins University, refers to an epidemiological approach in his model of inflation expectations formation. He asserts that economic pessimism, much like a disease, can spread through informational channels, which in turn influences the economic behavior of households and businesses.
Recently, epidemiology experts were fighting the COVID-19 pandemic, and today there are numerous posts and articles online predicting an inevitable VAT increase, an economic crisis, and a tightening of tax policies. In the digital age, where information flows move at the speed of light, such opinions can easily infect a large portion of society, creating panic expectations.
This poses a challenge for businesses, especially when numerous, often exaggerated, news about potential changes in tax policy lead to irrational decisions. For instance, some companies have already started raising prices or engaging in shrinkflation, trying to preemptively account for possible tax hikes and rising resource costs.
However, there are companies that choose to act differently despite the pressure of the information landscape. An example is Arilan Energy, which is developing a network of charging stations for electric vehicles. In light of the potential increase in electricity tariffs and changes in VAT, it has decided not to raise service prices in 2025, despite a significant rise in operational costs.
“We understand that our decision is a drop in the ocean, but it allows us to avoid a sharp increase in service prices and gives small entrepreneurs, such as electric taxi owners and bakeries, the opportunity to maintain their service costs,” says one of the company's founders, Boris Umanov.
This step is essentially an example of how prudent informational hygiene and responsibility regarding pricing can help keep the economy afloat even in uncertain conditions.
Making such decisions requires not only confidence in one's abilities but also the capability to navigate the informational environment without succumbing to panic and not altering pricing policies based on rumors or unproven forecasts. A sound informational strategy is the key to long-term success, minimizing the risk of financial losses and strengthening customer trust.
In the era of globalization of information flows and the increasing influence of social media on economic processes, it is essential to remember the role of informational hygiene. Monitoring the reliability of information sources and making decisions based on objective data rather than an epidemic of panic can be the decisive factor that ensures business resilience in conditions of economic instability.
The market always needs reliable players who can not only respond adequately to changes but also maintain calm in the storm. Perhaps, for companies like Arilan Energy, the determination to resist inflationary expectations and not raise prices will be their distinguishing feature, enhancing their reputation and supporting market stability.