Global nonfinancial corporates appear to be taking supply chain disruptions and soaring cost inflation in their stride. Our analysis suggests that in 54 out of 78 global sectors, most companies are finding it very easy or somewhat easy to pass on costs. Based on the last 12 months' results, EBITDA margins look set to hit a new high in 2021. Cost increases have been absorbed or negated in a variety of ways – demand offsets, demand shifts, product mix adjustments, hedging, indexation, positive operational gearing, cost pass-throughs, and keeping pay growth low. In our view, profit margin pressure will start to ratchet up in 2022. Our analysts expect supply disruption will persist until the end of 2022 for more than half of all sectors. Pay barely above 2019 levels is unlikely to be sustainable amid strong growth and rising costs, and signs of upward pay pressure are particularly apparent in North America.