Fund managers fear quickly climbing consumer prices threaten to sap corporate profits in the earnings season beginning this week, as Macquarie forecasts earnings growth in FY 2022 of over 13 per cent, down from FY 2021’s stellar 26 per cent.

The interim profit season comes on the heels of a global market sell-off that has struck some of the pandemic’s best performers, as central banks begin to tighten monetary policy. That means rising borrowing costs as companies deal with a laundry list of pandemic challenges, including high rates of COVID-19 infections and supply chain disruptions.