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Companies raise prices
Look out,[link widoczny dla zalogowanych]! From Huggies diapers to Nike shoes, Americans are about to get less bang for their buck on some of the biggest brands.This week, paper-products maker Kimberly-Clark announced plans to raise prices on diapers and toilet paper [link widoczny dla zalogowanych] later this summer. Nike said it would increase prices on their shoes. And food companies Kraft, Smuckers and Heinz recently announced price hikes on some of their brands.
"The increases are necessary to offset inflationary pressure from higher raw material and energy costs," Kimberly-Clark (KMB, Fortune 500) said in a press release.Huggies diapers and Pull-Ups prices will rise by 3% to 7%, the company [link widoczny dla zalogowanych] said. Cottonelle and Scott 1000 toilet paper will rise about 7%.Kraft Foods (KFT, Fortune 500) raised its price on Maxwell House coffee by 22%, or 70 cents per pound, after Smuckers (SJM) said last month it would raise the price of Folgers by 10%.
The increases come as major brands struggle to keep their profit margins intact, amid surging costs on raw materials. Producer prices rose 1.6% in February alone, the the biggest jump [link widoczny dla zalogowanych] in nearly two years, according to government data released Wednesday.Until recently, producers and retailers resisted price hikes, fearing they would lose customers during a still-sluggish economy and high unemployment.
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