CrimsonPhantom
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Coke, Procter & Gamble Announce Plans To Hike Prices
Quote:Procter & Gamble on Tuesday became the latest major U.S. consumer products company to announce plans to hike prices of its goods in the face of rising commodities prices and transportation costs.
The company—which makes some of the U.S.’s best-known household products, including Gillette razors, Tide detergent, and Crest toothpaste—said in its quarterly earnings announcement that it would hike prices on feminine care, baby care, and adult incontinence products beginning in September. The company said the prices increases would be in the mid to high single digits.
Rival Kimberly-Clark, which makes Huggies diapers and Kleenix facial tissues, said last month that it would hike prices by a similar amount starting in June.
Coca-Cola said on Monday that it was also planning to raise prices to offset rising commodities costs.
“We are well-hedged in ’21, but there’s pressure built up for ’22, and so there will have to be some price increases,” CEO James Quincey said in an interview with CNBC’s Sara Eisen on “Squawk on the Street.”
Companies cannot always pass increased costs on to consumers, especially in the short term. More often, they are forced to absorb the increased costs by cutting costs in other areas or accepting lower margins. But when consumers have more to spend—as they do now thanks to multiple rounds of stimulus checks, refundable child tax credits, and other programs aimed at bolstering household consumption—it is much easier to raise prices.
The price hike announcements are feeding worries that inflation may be rising faster than anticipated. Fed officials have repeatedly said, however, that they expect any rise in price levels to be transitory and not to lead to sustained inflation much higher than desirable.
That prediction, however, could be confounded if Democratic lawmakers and the Biden administration continue to pump up deficit spending and direct cash injections into households, according to Larry Lindsey of the Lindsey Group. The former head of the National Economic Council under George W. Bush said in a CNBC interview on Monday that he expected Democrats to keep pumping money into the economy through next year in an effort to maintain control of the House and Senate.
“We’re in a situation where we are likely to have continued fiscal stimulus,” Lindsey said. “It’s quite unlikely that in an election year Congress is going to let their constituents have less money than they did in 2020.”
That would push up the demand side of the economy even while other factors keep the supply side constrained, resulting in inflation, Lindsay added.
Link
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04-20-2021 01:02 PM |
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JRsec
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 01:02 PM)CrimsonPhantom Wrote: Quote:Procter & Gamble on Tuesday became the latest major U.S. consumer products company to announce plans to hike prices of its goods in the face of rising commodities prices and transportation costs.
The company—which makes some of the U.S.’s best-known household products, including Gillette razors, Tide detergent, and Crest toothpaste—said in its quarterly earnings announcement that it would hike prices on feminine care, baby care, and adult incontinence products beginning in September. The company said the prices increases would be in the mid to high single digits.
Rival Kimberly-Clark, which makes Huggies diapers and Kleenix facial tissues, said last month that it would hike prices by a similar amount starting in June.
Coca-Cola said on Monday that it was also planning to raise prices to offset rising commodities costs.
“We are well-hedged in ’21, but there’s pressure built up for ’22, and so there will have to be some price increases,” CEO James Quincey said in an interview with CNBC’s Sara Eisen on “Squawk on the Street.”
Companies cannot always pass increased costs on to consumers, especially in the short term. More often, they are forced to absorb the increased costs by cutting costs in other areas or accepting lower margins. But when consumers have more to spend—as they do now thanks to multiple rounds of stimulus checks, refundable child tax credits, and other programs aimed at bolstering household consumption—it is much easier to raise prices.
The price hike announcements are feeding worries that inflation may be rising faster than anticipated. Fed officials have repeatedly said, however, that they expect any rise in price levels to be transitory and not to lead to sustained inflation much higher than desirable.
That prediction, however, could be confounded if Democratic lawmakers and the Biden administration continue to pump up deficit spending and direct cash injections into households, according to Larry Lindsey of the Lindsey Group. The former head of the National Economic Council under George W. Bush said in a CNBC interview on Monday that he expected Democrats to keep pumping money into the economy through next year in an effort to maintain control of the House and Senate.
“We’re in a situation where we are likely to have continued fiscal stimulus,” Lindsey said. “It’s quite unlikely that in an election year Congress is going to let their constituents have less money than they did in 2020.”
That would push up the demand side of the economy even while other factors keep the supply side constrained, resulting in inflation, Lindsay added.
Link
When the dollar declines and commodities go up this is how inflation begins. We have enough dollar deflation due to the COVID giveaways to account for about 20 percent in inflation. If the dollar loses World Reserve Currency status, as China hopes, our inflation jumps to 35 percent overnight and we become impoverished. There is not, and never has been, a free lunch!
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04-20-2021 01:19 PM |
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Niner National
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
Why do we need continued fiscal stimulus? Maybe I'm just insulated from it because I do well and all my friends do well, but I truly don't know anyone that doesn't have a job. I see now hiring signs everywhere. I even see fast food restaurants now offering $500 sign on bonuses just to get employees.
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04-20-2021 01:27 PM |
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bobdizole
All American
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 01:27 PM)Niner National Wrote: Why do we need continued fiscal stimulus? Maybe I'm just insulated from it because I do well and all my friends do well, but I truly don't know anyone that doesn't have a job. I see now hiring signs everywhere. I even see fast food restaurants now offering $500 sign on bonuses just to get employees.
The length of the UEB extension was the dumbest part of that bill. Everyone of my customers in the food industry is desperate to hire people but it's more money to stay on unemployment. In TN all you have to do is send in proof you have applied to places and you can stay on UE. This translates to some of my customers scheduling 10 interviews and no one shows up.
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04-20-2021 01:41 PM |
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UofMstateU
Legend
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 01:41 PM)bobdizole Wrote: (04-20-2021 01:27 PM)Niner National Wrote: Why do we need continued fiscal stimulus? Maybe I'm just insulated from it because I do well and all my friends do well, but I truly don't know anyone that doesn't have a job. I see now hiring signs everywhere. I even see fast food restaurants now offering $500 sign on bonuses just to get employees.
The length of the UEB extension was the dumbest part of that bill. Everyone of my customers in the food industry is desperate to hire people but it's more money to stay on unemployment. In TN all you have to do is send in proof you have applied to places and you can stay on UE. This translates to some of my customers scheduling 10 interviews and no one shows up.
yep, and you can thank Pelosi for that.
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04-20-2021 02:03 PM |
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stinkfist
nuts zongo's in the house
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 01:19 PM)JRsec Wrote: (04-20-2021 01:02 PM)CrimsonPhantom Wrote: Quote:Procter & Gamble on Tuesday became the latest major U.S. consumer products company to announce plans to hike prices of its goods in the face of rising commodities prices and transportation costs.
The company—which makes some of the U.S.’s best-known household products, including Gillette razors, Tide detergent, and Crest toothpaste—said in its quarterly earnings announcement that it would hike prices on feminine care, baby care, and adult incontinence products beginning in September. The company said the prices increases would be in the mid to high single digits.
Rival Kimberly-Clark, which makes Huggies diapers and Kleenix facial tissues, said last month that it would hike prices by a similar amount starting in June.
Coca-Cola said on Monday that it was also planning to raise prices to offset rising commodities costs.
“We are well-hedged in ’21, but there’s pressure built up for ’22, and so there will have to be some price increases,” CEO James Quincey said in an interview with CNBC’s Sara Eisen on “Squawk on the Street.”
Companies cannot always pass increased costs on to consumers, especially in the short term. More often, they are forced to absorb the increased costs by cutting costs in other areas or accepting lower margins. But when consumers have more to spend—as they do now thanks to multiple rounds of stimulus checks, refundable child tax credits, and other programs aimed at bolstering household consumption—it is much easier to raise prices.
The price hike announcements are feeding worries that inflation may be rising faster than anticipated. Fed officials have repeatedly said, however, that they expect any rise in price levels to be transitory and not to lead to sustained inflation much higher than desirable.
That prediction, however, could be confounded if Democratic lawmakers and the Biden administration continue to pump up deficit spending and direct cash injections into households, according to Larry Lindsey of the Lindsey Group. The former head of the National Economic Council under George W. Bush said in a CNBC interview on Monday that he expected Democrats to keep pumping money into the economy through next year in an effort to maintain control of the House and Senate.
“We’re in a situation where we are likely to have continued fiscal stimulus,” Lindsey said. “It’s quite unlikely that in an election year Congress is going to let their constituents have less money than they did in 2020.”
That would push up the demand side of the economy even while other factors keep the supply side constrained, resulting in inflation, Lindsay added.
Link
When the dollar declines and commodities go up this is how inflation begins. We have enough dollar deflation due to the COVID giveaways to account for about 20 percent in inflation. If the dollar loses World Reserve Currency status, as China hopes, our inflation jumps to 35 percent overnight and we become impoverished. There is not, and never has been, a free lunch!
XACLY!
it's not rocket science...
some here saw it coming....
@can'tFightTheTape
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04-20-2021 02:05 PM |
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200yrs2late
Resident Parrothead
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 01:27 PM)Niner National Wrote: Why do we need continued fiscal stimulus? Maybe I'm just insulated from it because I do well and all my friends do well, but I truly don't know anyone that doesn't have a job. I see now hiring signs everywhere. I even see fast food restaurants now offering $500 sign on bonuses just to get employees.
Democrat buying their votes domestically, and earning their 10% overseas.
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04-20-2021 02:14 PM |
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chargeradio
Vamos Morados
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
I need to quit drinking soda anyway, maybe its for the better.
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04-20-2021 11:12 PM |
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shere khan
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-20-2021 02:05 PM)stinkfist Wrote: (04-20-2021 01:19 PM)JRsec Wrote: (04-20-2021 01:02 PM)CrimsonPhantom Wrote: Quote:Procter & Gamble on Tuesday became the latest major U.S. consumer products company to announce plans to hike prices of its goods in the face of rising commodities prices and transportation costs.
The company—which makes some of the U.S.’s best-known household products, including Gillette razors, Tide detergent, and Crest toothpaste—said in its quarterly earnings announcement that it would hike prices on feminine care, baby care, and adult incontinence products beginning in September. The company said the prices increases would be in the mid to high single digits.
Rival Kimberly-Clark, which makes Huggies diapers and Kleenix facial tissues, said last month that it would hike prices by a similar amount starting in June.
Coca-Cola said on Monday that it was also planning to raise prices to offset rising commodities costs.
“We are well-hedged in ’21, but there’s pressure built up for ’22, and so there will have to be some price increases,” CEO James Quincey said in an interview with CNBC’s Sara Eisen on “Squawk on the Street.”
Companies cannot always pass increased costs on to consumers, especially in the short term. More often, they are forced to absorb the increased costs by cutting costs in other areas or accepting lower margins. But when consumers have more to spend—as they do now thanks to multiple rounds of stimulus checks, refundable child tax credits, and other programs aimed at bolstering household consumption—it is much easier to raise prices.
The price hike announcements are feeding worries that inflation may be rising faster than anticipated. Fed officials have repeatedly said, however, that they expect any rise in price levels to be transitory and not to lead to sustained inflation much higher than desirable.
That prediction, however, could be confounded if Democratic lawmakers and the Biden administration continue to pump up deficit spending and direct cash injections into households, according to Larry Lindsey of the Lindsey Group. The former head of the National Economic Council under George W. Bush said in a CNBC interview on Monday that he expected Democrats to keep pumping money into the economy through next year in an effort to maintain control of the House and Senate.
“We’re in a situation where we are likely to have continued fiscal stimulus,” Lindsey said. “It’s quite unlikely that in an election year Congress is going to let their constituents have less money than they did in 2020.”
That would push up the demand side of the economy even while other factors keep the supply side constrained, resulting in inflation, Lindsay added.
Link
When the dollar declines and commodities go up this is how inflation begins. We have enough dollar deflation due to the COVID giveaways to account for about 20 percent in inflation. If the dollar loses World Reserve Currency status, as China hopes, our inflation jumps to 35 percent overnight and we become impoverished. There is not, and never has been, a free lunch!
XACLY!
it's not rocket science...
some here saw it coming....
@can'tFightTheTape
Carter II. We called it early.
The hole gets deeper and deeper.
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04-20-2021 11:20 PM |
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Danforth
Banned
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
It was only a matter of time before inflation set it.
With all the tax breaks and stimulus money what did you expect?
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04-21-2021 08:49 AM |
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stinkfist
nuts zongo's in the house
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RE: Coke, Procter & Gamble Announce Plans To Hike Prices
(04-21-2021 08:49 AM)Danforth Wrote: It was only a matter of time before inflation set it.
With all the tax breaks and stimulus money and *blue state bail out* what did you expect?
simplified fify
(This post was last modified: 04-21-2021 09:15 AM by stinkfist.)
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04-21-2021 09:14 AM |
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