While they reported that there were still businesses opportunities, these increased costs made it more difficult for accountants to spot opportunities for growth or cost-cutting for the businesses they advise.
Report author Manos Schizas, senior policy adviser with ACCA, said: "The huge rise in inflation has been the most worrying development to emerge from our latest survey. More than half of respondents reported problems with rising operating costs, which will hinder their ability to look for new opportunities at the time when businesses desperately need to fill the order books.
"The number of finance professionals worried about inflation will also be a concern to governments that have put in place a range of measures to control rising prices. These measures were designed to ensure that businesses do not fail because they cannot afford the raw materials or expertise," he said.
Responses suggest that, the global economic recovery picked up speed again in early 2011 after briefly going into reverse at the end of 2010 - but that conditions remain fragile.
Accountants reported that both demand for goods and services and cash flow conditions have continued to improve around the world. While this has generally led to a more stable outlook for employment and investment in developed countries, accountants in the developing world reported slightly less investment in staff and more layoffs than last quarter as businesses come to terms with the weaker-than-expected recovery.
In the developing world, members saw an opportunity in exports; relying mostly on strong supply chain relationships, investments in quality, and innovation. Accountants in developed markets, however, reported fewer opportunities in all of these areas compared to previous quarters -while still anticipating a rise in new orders for their businesses.
With the global economic recovery still far from assured and Europe still in the throes of a financial crisis, members were asked how they thought government spending in their countries would change in the mid-term.
Although western countries were still expected to embrace austerity, respondents around the world agreed that their Governments were more likely to increase spending in order to support the recovery.
Overall, members around the world feel that fiscal policy is now more of a balancing act than before, especially in fast-growing markets where rising inflation has reduced the number of options available to policymakers. Almost one in six respondents expect their government to get spending dangerously wrong over the next five years.
