Procter & Gamble is the latest consumer goods company to announce that it is raising prices on some of its products to combat rising commodity and transportation costs.
P&G revealed on Tuesday that it will implement price hikes across its baby-care, feminine-care, and adult incontinence products, which include brands like Pampers, Tampax, and Always. The Ohio-based company said the price increases will vary by brand but will be in the range of mid-to-high single digits. The price hikes will go into effect in mid-September.
As mentioned above, P&G is hiking prices on the some of its products because it is now expecting to soak up higher commodity and transportation costs. The company is forecasting spending an additional $125 million on commodity costs, which was initially expected to be flat for the year, and $200 million on freight, up from its previous full-year outlook of $100 million last quarter.
P&G joins a growing list of other consumer goods companies that have told shoppers to expect price hikes on their products in the coming months. For instance, P&G’s rival Kimberly-Clark previously announced that it will raise prices on Huggies diapers and Scott toilet paper in North America in June to protect profit margins.
Both P&G and Kimberly-Clark are expecting that consumers will be willing to pay more for a costlier version of their favorite brands instead of opting for a less expensive label. The outcome of these price hikes, however, will largely depend on the economic recovery from the COVID-19 pandemic and how many consumers have the cash to spare.