10 companies raising prices
Get ready to pay more for things like Big Macs and Chevy Malibus. CEOs are admitting as much on company conference calls this earnings season.
Prices have been rising on everything from underwear to airfares, and based on comments from corporate executives, more increases are to come.
So far, American consumers have weathered the increases fairly well. "Consumers are continuing to modestly grow their spending," says Scott Hoyt, the director of consumer economics at Moody's Analytics.
Price increase: A 6% increase in the price of Huggies.
Reason: Rising wood-pulp prices.
Kimberly-Clark (KMB, news), a leading maker of personal paper products, posted worse-than-expected first-quarter financial results. Chairman and CEO Thomas J. Falk said the Irving, Texas, company had taken "a pretty big hit on margins" in the period due to higher pulp costs.
Price increase: An average of $123 per vehicle.
Reason: Rising oil and metal prices.
General Motors (GM, news) responded to higher commodity prices by raising prices on its vehicles.
Still, the Detroit company was spared most of the supply-chain disruptions that have hampered rival Toyota Motors (TM, news) since this spring's earthquake and tsunami off the coast of Japan.
Price increase: Socks and underwear.
Reason: Rising cotton prices.
Cotton prices are up more than 85% from a year ago, and clothing manufacturers and retailers have felt the spike.
Price increase: Prices of all menu items are up 1% or more.
Reason: Rising commodity costs.
McDonald's (MCD, news) described its March price increases as a preview of what was to come.
CFO Peter Benson explained: "We are seeing cost increases on virtually every item in our basket, with beef accounting for about one-third of the additional increase. Reduced herd sizes, increased demand and a weaker U.S. dollar are driving up exports (and) contributing to the increase in beef costs."
Price increase: Higher prices across all product lines.
Reason: Rising costs for oil, cotton and labor.
In announcing higher prices for all of its athletic footwear and apparel, Nike (NKE, news) said it was working to hold down the increases through improved supply-chain management.
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