Kerry Stokes-controlled industrial conglomerate Seven Group Holdings’ boss Ryan Stokes has warned investors to get used to the idea of higher inflation, as the unprecedented flow of stimulus into the local economy dries up.

With its finger on the pulse of industries ranging from media and energy to mining services and construction, there are few companies with a better idea of what’s happening with the Australian economy than Seven Group.

Mr Stokes told this masthead on Tuesday the low-inflation environment, which a generation of investors has gotten used to, was on its way out.

“From a group perspective, we are thinking inflation’s not transitory. It’s structural, but to be honest, it’s basically returning to normal,” he said.

According to Mr Stokes, the supply chain issues bedevilling companies this reporting season is less about COVID than it is about global growth - partly fuelled by stimulus packages which have pumped up markets around the world, including Australia.

“The interesting part for us is seeing positive tailwinds across all our sectors, from industrial services to energy to media. We see that domestic growth profile as really robust, we see the supply chain issue as kind of like growing pains more than anything else,” he said.

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“What we’ve seen is just this ramp up of activity across the board, and there are so many sectors you can point to where you see that growth … (and) this is happening around the world.“

“Now we’re seeing growth and activity fuel that, and we’re seeing a change in mindset from customers, and even us to suppliers, where you’re expecting that pricing power to come through. So, we think that’s normal now.”