What P&G price hikes tell about basic consumer goods inflation
International Business Times: Michael Goldberg, associate professor of design and innovation at Weatherhead School of Management and executive director of the Veale Institute for Entrepreneurship, said that recent price hikes by Procter & Gamble are a good reminder that inflation for basic branded goods is still a problem that customers must face anytime they visit the local supermarket. “Consumers have become accustomed to paying higher prices during periods of higher inflation,” he said. “As inflation decreased and commodity prices came down, P&G has not lowered its prices, which has helped spike profits. And with strong premium brands like Tide, they will likely be slower to decrease prices than their competitors, likely keeping their margins strong.”
