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Many companies have given clear indications about increasing the value of their products.
Consumer prices continue to rise in the US after the rate of corona virus infection decreased and businesses opened. Economists are speculating whether prices, rising at 5% annually in May, will continue for a long time. The cost prices of commodities have increased by 6.2% in April. Cost prices in China increased by 9% in May. This is the biggest increase in 13 years. This increase will have an impact on the prices of many commodities.
The Reserve Bank of America-Federal Reserve has emphasized that high inflation is temporary. It is probably for this reason that the heads of many large companies do not discuss inflation publicly. By the way, Darius Adamjic of large industrial conglomerate Honeywell says inflation will remain. It will be more than the public estimated. Meanwhile, many companies have started preparations to deal with the rising cost.
Companies are now going towards the old formula of raising prices. In April, Coca-Cola told analysts that its soft drinks would now be more expensive. Whirlpool has hinted at increasing the prices of its washing machines and other items. Procter & Gamble plans to increase prices of some of its products in September.
Chipotle has confirmed to increase the price of food and drinks at its Mexican Grill restaurant by 4% on June 8. Pet food company Royal Canin has not increased the price but has reduced the quantity of its goods. Furniture company Michael Goldman has increased the prices of its products twice this year.