Cincinnati investment management firm Bahl & Gaynor’s Jim Russell said there’s too much demand for supply right now.
“Once you solve the omicron COVID issue, I think that the labor force will reengage in production,” Russell said. “We will have the goods and services that we need, the inflation rate will tend to moderate from the red hot levels.”
In its statement, P&G said it is working to find cost savings within other areas of its business.
“And, where we need to pass on some costs, we’re pairing those price increases with innovation wherever possible to continue to deliver great value for our consumers,” the statement says. “What we shared is that consumers continue to favor brands that deliver value. Additionally, pricing at the store shelf is at the sole discretion of the retailer.”
Russell predicts the inflation rate will also fall a point or two by May due to the federal reserve raising short term interest rates.
“What worries us a bit is it is seeping into wages,” Russell said. “Even a robust increase on wages is not keeping up with inflation right now. So, most Americans are seeing real purchasing power actually diminish or decline.”
Jayne Tomlin manages a local grocery store called Country Fresh Farm Markets.
“Sometimes price is just too high, and we can watch, and if things aren’t moving, that’s a good indication that price is high,” Tomlin said. “And sometimes, we do have to lower it even if it means us just not making the margin or any margin at all.”
Shoppers such as Harris are seeking out local stores, arguing corporate giant prices are not worth the quality.
“You’re making me spend more money, and you are giving me less of a product,” Harris said.
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