consumer In the foreseeable future, as changes in the global economy during the pandemic continue to cause inflation, prices may rise.
Some economists told Wall Street Journal Their so-called secular forces — globalization, demographics, and e-commerce — are beginning to reverse and are no longer able to control inflation.
Sarah House, director and senior economist at Wells Fargo, told the Wall Street Journal that “in the low inflation environment of the last cycle… the factors that played an important role are beginning to fade.”
House continued to say that this means that inflation may rise in the next few years, otherwise the Fed will need to implement stricter supervision on it to achieve its strict 2.0% inflation target.
The news came before the key inflation data expected by the Department of Labor Statistics on Tuesday, including the June Consumer Price Index (CPI). The expected inflation rate is 3.4%.
However, consumers are already feeling the pressure because several companies announced price increases this year. The cost of raw materials troubles manufacturers, causing prices to rise for everything from paper products to toys.
Hasbro announced in April that it will Increase the price of its toys and games To offset the increase in raw material costs, Mattel stated that the increase in resin and freight costs had a “significant impact” on its profit margins. NBC Finance Channel Report.
Coke It also stated that some of its beverages will increase in price to help offset production costs, but did not disclose which brands.
In late March, Kimberly Clark Announced to increase the price of its baby and child care, adult care and Scott toilet paper products to the mid-to-high single-digit range in late June, citing the increase in pulp prices.
Peanut butter producer JM Smucker increased the price of its Jif products in August 2020 because peanut production was lower than expected.According to reports, other peanut butter producers have followed suit NBC Finance Channel.
But this is not the only place where consumers have seen prices soar. According to the Wall Street Journal, the shift to e-commerce has also stimulated a shift in consumer spending, as nearly 14% of retail sales are now conducted online, which is more than five times the amount of online sales in 2005.
But the transparency and competitiveness of these platforms are pushing up prices. According to the Wall Street Journal, according to data from Adobe Digital Insights, online prices have risen by 2% since March 2020. Since the beginning of the pandemic, the prices of sporting goods, furniture and electrical appliances have risen sharply.
The news outlet said that electronic product prices fell 1.8% during the same period, while computer prices fell 1.2%.
Photo: AFP/Torga Ackerman
