Reuters
Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength
Prices of everyday basics like Bounty paper towels and Cadbury chocolate may rise again this year while those of others like Clorox Co wipes and Diet Pepsi are likely to stay steady, as manufacturers make differing bets on the strength of the consumer and their brands. Consumer goods makers’ strategies on further price hikes depends on their leverage with retailers such as Walmart Inc and Tesco plc, who are pushing back against more increases, how much consumers need and want the items and their arrangements for buying volatile commodities, some of which are falling in price. In Britain, consumers paid 16.7% more for food in the month to Jan. 22 compared to the same period last year, while U.S. prices for food eaten at and away from home rose 10.1% in the 12 months ended in January.
