We’ve all heard by now that inflation is here. CPI, the main measure of US inflation, is up 5.4% YoY. As of last month, it was still rising.
On the bright side, most of that inflation can be blamed on COVID, and it should end with COVID. Investors seem satisfied with that. However, companies are still sounding the alarm. 🚨
In the last few months, several companies raised prices, including Chipotle— Chipotle increased prices by about 4%. 🙁 🌯 That decision paid off in earnings earlier this week, where $CMG reported earnings surpassing pre-COVID levels.
Appliance maker Whirlpool, Slim Jim-owner Conagra, PepsiCo, and product giant Procter & Gamble are a few of many brands raising prices.
Unfortunately, price increases are likely to stay even when inflation decreases. Maybe that’s good for investors, but it’s bad for everyone else. Keep an eye on companies raising prices on goods. 🕵️♂️