Not a surprise for us and our Global Macro Insight Subscribers. Inflation is gaining traction.
Executives at Coca-Cola, Chipotle, and appliance maker Whirlpool, as well as household brand behemoths Procter & Gamble and Kimberly-Clark, all told analysts in earnings calls last week that they were preparing to raise prices to offset rising input costs, particularly of commodities.
- Inventories are low
- Commodity prices are high
- Supply chains are under pressure (or collapsing, or imploding, that depends!) due to the pandemic of Covid, geopolitical and climate events.
- Hangry consumers
- Central banks are closer to tighten than accommodate their policies.