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U.S. Companies Bump up Prices on Supply Squeeze, Demand Boom

Shortages, bottlenecks, and a year-long bull market in commodities have input costs near a 13-year high. Compounded by a year’s worth of pent-up demand, these trends are driving inflation in consumer goods prices.

By Payne Lubbers | April 27, 2021 at 12:37 PM

U.S. companies face soaring bills for all kinds of materials that they need to do business—and surging demand is helping them pass on those higher costs to their customers.

In early-season earnings calls, executives representing companies from burrito chain Chipotle Mexican Grill Inc. to appliance giant Whirlpool Corp. and diaper-maker Procter & Gamble Co. have outlined price hikes, largely in response to rising materials costs. Their comments back up the data that show inflationary pressures building in the economy as the pandemic recovery gains speed. A sustained rise in prices is poised to test the Federal Reserve’s expectation that any post-Covid spike will be limited and temporary.

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