Pricing power, a company's ability to raise prices without losing customers, has become critical amid rising inflation. Companies with strong pricing power tend to maintain stable profit margins, outperforming the broader market. Bloomberg’s Pricing Power Index, which tracks companies with stable gross profit margins over five years, demonstrates that these companies deliver higher returns with lower volatility compared to the broader market. This index has consistently outperformed in various regions globally, proving that pricing power is a strong investment factor across different economic conditions.

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