Why Procter & Gamble Wants To Raise Cleaning Product Prices In The Next Months

Because American households now have $ 1.6 trillion in additional savings, thanks to stimulus, some economists have expressed concern that prices will skyrocket

Photo: Jessica McGowan / Getty Images

For: Drafting 21 of April 2021

Procter & Gamble announced that its prices will go up in the fall for some of its products. Prices will increase by baby supplies like Pampers to feminine hygiene products like Tampax .

That in itself causes no alarm, except that P&G is following the trend of several other consumer goods companies that have released the upcoming increases.

The announcements are raising concerns that inflation may rise, topic that has already been on the minds of economists given the trillions that have been pumped into the economy through various stimulus packages.

Because American households Now they have $ 1.6 trillion in additional savings, thanks to the stimulus, some economists have expressed concern that prices will skyrocket.

The rush to buy plane tickets, clothes and vehicles could lead to inflation, in other words. Inflation has been subdued in recent years, hovering around 2% per year since the Great Recession in 2008.

P & G’s rival Kimberly-Clark has also said it plans to increase their prices, the increases are due to companies facing higher costs and passing them on to consumers.

Other companies that have recently announced price increases include:

Owens Corning , with a 5% to 7% price increase on shingles and other roofing products this month.

Mohawk Industries , with an increase of 3% to 8% in its furniture.

Shake Shack , which is testing a 5% price increase

McKesson , projecting an average single digit increase in its pharmaceuticals.

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