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Consumer goods prices are rising as manufacturers struggle with higher costs.


Consumers feel the pressure on their wallets because they pay more for their weekly shopping.

Prices for commodities such as milk, coffee and shampoo are rising, and the multinational conglomerates that produce them, such as Danone, Nestlé and Procter & Gamble, blame the increases on higher costs due to pandemic supply chain disruptions.

The higher bill at checkout comes as total consumer prices rose sharply in 2021 and rose 5.4 percent in September from the previous year. Food and furniture costs rose, and Federal Reserve officials have indicated that if inflation remains high, the central bank may need to intervene to ensure that price increases do not become permanent.

Other companies are likely to follow suit by raising prices as inflationary pressures continue, said Laura Veldkamp, ​​a professor of finance in Columbia University’s Graduate School of Business.

Demand for some products declined during the pandemic, “but now we’re going shopping again,” Ms Veldkamp said. “It is normal for companies to raise prices.”

Nestlé became the latest consumer products manufacturer on Wednesday to say consumers should expect price increases in the coming months. in his quarterly financial performance reportNestlé attributed rising costs to supply chain constraints. “We do expect higher input cost inflation,” François-Xavier Roger, the company’s chief financial officer, said during a conference call.

The company’s dairy products, such as carnation milk and Dreyer’s ice cream, and pet care products, such as Purina pet food and cat litter, were among the items most affected by increased costs in 2021. Nestlé, maker of Nescafé and Starbucks Coffee at Home, also said it expects higher coffee prices in 2022.

Nestlé’s grim report followed a similar report by Procter & Gamble, which said Tuesday it was linked to higher raw material, transportation and freight costs. “We will offset some of these higher costs with price increases,” Andre Schulten, P&G’s chief financial officer, said during a conference call. “As this pricing hits store shelves, we will slowly follow consumption trends.”

He added that consumers should expect higher prices for P&G grooming, oral and hair care products, whose brands include Gillette, Olay, Oral-B and Pantene.

Danone, maker of Silk milks and Evian water, also expected price increases for the rest of the year. “What started as increased inflation of materials costs evolved into widespread constraints affecting our supply chain in many parts of the world,” said the company said: Tuesday in its quarterly results.

Companies have also said labor shortages have slowed operations in warehouses and distribution centers, which have reported some workers sick with Covid-19 and others quarantined. The supply chain problems come before the holiday season, with major ports facing a staggering pile of cargo showing no signs of relenting.

Unilever, maker of Ben & Jerry’s, Lipton and Dove, will release its third quarter earnings report Thursday as investors look for signs of continued price increases.

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