The cost of doing business – the elevated prices of very necessary items included – is going to start hitting home very soon.
With a dramatic upswing in the price of commodities across the board, many familiar companies are likely hiking prices in the coming weeks to adjust their balance sheets.
From baby care to peanut butter to incontinence, you’re likely to feel the pinch.
As for the commodities? A few specifics, courtesy Business Insider:
- Corn futures contracts are up 96% over the past year.
- Cotton and wheat futures contracts are up 54% and 50%, respectively.
- Lumber prices have risen more than 265% in the past year.
The list of affected products includes brands found in millions of pantries and refrigerators across the country.
Coca-Cola CEO James Quincey told CNBC this week that company prices would rise due to those higher commodity prices.
Others prominent in the consumer category who have echoed concerns and will be raising prices: Kimberly-Clark, J. M. Smucker, Procter & Gamble and General Mills.
Smucker CEO Mark Smucker told analysts in November that “it was very clear that we were experiencing cost pressure.”
Inflation concerns are real, and rising prices are coming to a store near just about everyone.
General Mills CEO Jeff Harmening told investors on a March 24 earnings call that the hikes are on the way because the issue is “broad-based across commodities, across logistics, across things like aluminum and steel,” Harmening said.
Procter & Gamble announced Tuesday it planned to hike prices for baby care, feminine care and adult-incontinence products in September.
Federal Reserve Chair Jerome Powell could face a decision to raise interest rates, though some experts expressed concern.
Mohamed El-Erian, president of Queens’ College, Cambridge, and chief economic adviser at Allianz, told Bloomberg this month the US economy was unprepared for an interest-rate shock.