Sumary of Companies Push Prices Higher, Fueling Inflation. Will They Keep Going?:
- What companies decide will go a long way to answering a question that has surged to the top of executives’ and economists’ agendas this year: Is the recent jump in inflation transitory, as the Federal Reserve predicts, or persistent, as some executives warn?
- But the company warns its ability to keep pace with costs could lag in coming months, in part because customer contracts put limits on price increases.
- “In an environment where inflation continues to rise quarter after quarter after quarter, there are certain sticking points within our ability to push it through,” said Fastenal finance chief Holden Lewis.
- ” Conagra, which makes Birds Eye frozen vegetables and Slim Jim meat snacks, among hundreds of other food products, couldn’t raise prices enough in the most recent quarter to make up for its own rising costs, including for cooking oils, packaging and transportation.
- “We still think our products’ price points have room to move north based on the quality that we offer,” Chief Executive Sean Connolly told investors last week, noting that widespread increases across grocery aisles seem to leave consumers more willing to pay so far.
- “I don’t think anyone knows what the word transitory is really going to turn out to mean,” said Julien Mininberg, who heads consumer-products company Helen of Troy Ltd. The maker of Pert shampoo and OXO potato peelers, Helen of Troy said it has raised prices selectively, including by introducing new products at higher price points.
- The company said it slowed price increases in its health and home division while working through some regulatory issues.
- Before long, it plans to “go back to the customers and take those prices up,” Mr. Mininberg said in a July 8 conference call with investors.