If you thought that the rising food and energy costs were bad, just wait for the next round. Many retailers and restaurants have held off on passing on inflation but those days are nearing an end. With all of the basic food costs going up, McCain is going to need a larger cheat sheet to keep track of prices. Perhaps Phil Gramm can give him the answers on the fly the way Lieberman does for Iraq. Now that's leadership.
Most inflation this year has come from food and fuel, as retailers resisted passing along to strapped consumers the higher prices manufacturers charged them, but coming increases from companies such as Johnson & Johnson and Hasbro Inc. may leave them with no choice.
"While these increases have not for the most part been passed on at the retail level, it is inevitable that they will be at some point," said Dean Baker, co-director of the Center for Economic and Policy Research. "Car dealers and other retailers cannot continue to absorb rising costs at the wholesale level and not pass some of these increases on to consumers."
Sherwin Williams Co. on July 17 announced its third price increase in eight months. The company has been having "difficult discussions" with retailers, Chris Connor, chairman and CEO, said on its quarterly conference call.
The price increases are "well supported with facts in terms of why the company needs them," he said. "Our customers, to the best of their ability, are passing them on."
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