Q2 2020
Inflationary and Deflationary Pressures
Based on our observations of the market and our extensive discussions with the supply chain we have established that there are a number of inflationary and deflationary pressures that are likely to impact input costs and tender pricing. Currently one of the most significant inflationary pressures is the reduced levels of productivity on-site due to the latest site operating procedures (SOP) and social distancing guidelines. However, as noted in our table below, there are a number of deflationary pressures counteracting this – not the least of which is lower demand and confidence.
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![Deflationary](https://optimise2.assets-servd.host/gt-marketintel/production/uploads/Tender-Price-Indicators/2020/Q2/Deflationary.png?w=480&q=80&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&dm=1649865766&s=c1f70b1b02d6a72f66cf6bd316509475 480w, https://optimise2.assets-servd.host/gt-marketintel/production/uploads/Tender-Price-Indicators/2020/Q2/Deflationary.png?w=640&q=80&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&dm=1649865766&s=b1104b63c0580f3d91d89b4b065bc517 640w, https://optimise2.assets-servd.host/gt-marketintel/production/uploads/Tender-Price-Indicators/2020/Q2/Deflationary.png?w=800&q=80&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&dm=1649865766&s=f1eb2b8096fc1256dcb9c87ce5f1d844 800w, https://optimise2.assets-servd.host/gt-marketintel/production/uploads/Tender-Price-Indicators/2020/Q2/Deflationary.png?w=1280&q=80&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&dm=1649865766&s=a1902d7a648db919fd3a361c6fde5168 1280w)