Part B2 · 3 illustrated lessons

Inflation and Currency

Convert prices and revenue into real terms. Handle price rises and currency moves without breaking trust.

Revenue in local currency can rise while its purchasing power falls. Compare nominal and real growth before judging performance, and separate general inflation from the specific cost changes affecting your business.

A weaker currency can raise network and handset costs while household budgets are already under pressure. Review pack affordability and contribution together. Explain changes openly, show the full price and avoid treating a fixed entry price as a promise that can ignore future economics.

Put it to work

Convert last year’s ARPU growth into real terms using a dated inflation series. Review imported equipment, fuel and handset exposure separately. Build alternative price and pack scenarios with explicit affordability assumptions.

A question to try

How much of reported revenue growth remains after adjusting for inflation?

Illustration

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