BELOW SUPERNAV drop zone ⇩

Companies sound alarm over commodity price hikes on toilet paper, baby care products

Boxes of Kleenex tissues are displayed in a pharmacy, Monday, April 19, 2021 in New York. Procter & Gamble, Kimberly-Clark and Coca-Cola are warning that they’ll raise prices on many of their products as raw material costs rise. Commodities like plastic, paper, sugar and grains are all getting more expensive as demand outpaces supply. (AP Photo/Mark Lennihan)

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

Testing widget old system

Lorenzo shared

Mortgage Calculator

This calculator helps you estimate your monthly mortgage payment. It adds up the loan payment (principal + interest), property tax, and insurance. The loan payment is spread out over the years of your loan term.

This is the total amount you're borrowing from the bank.
This is the yearly interest rate on your loan.
This is how long you'll take to repay the loan.
This is the yearly tax you pay on your property.
This is the yearly cost to insure your home.

Monthly Payment Breakdown

Principal and Interest: $

Property Tax: $

Homeowners Insurance: $

Total Estimated Monthly Payment: $

(AP) — Toilet paper, baby care products, soft drinks and many other everyday products are about to get more expensive.

Procter & Gamble, Kimberly-Clark and Coca-Cola have all warned that they’ll raise prices on many of their products as raw material costs rise. Plastic, paper, sugar, grain and other commodities are all getting more expensive as demand outpaces supply.

Gas prices are shown on a Exxon service station sign in Philadelphia, Wednesday, April 28, 2021. Commodities like plastic, paper, sugar and grains are all getting more expensive as demand outpaces supply. Companies are also paying more for shipping as fuel costs rise and ports experience longer delays because of congestion. (AP Photo/Matt Rourke)

Companies are also paying more for shipping as fuel costs rise and ports experience longer delays because of congestion.

The potential hit to consumers’ wallets comes as the economy returns to some semblance of normalcy. Vaccine distribution continues at a steady pace, promising to put the worst of the pandemic and business shutdowns in the past.

States have been loosening restrictions and businesses are reopening to a lot of pent-up demand from people who have been staying cautiously close to home during the pandemic.

But that improving economy and pent-up demand is straining distribution channels for raw materials and other goods.

Prices for many consumer goods, such as toilet paper, ticked up modestly over the last few months, according to data from NielsenIQ. Pressure is building, though, as costs increase for companies and many have signaled that the price increases are coming later this year and likely into 2022 to offset the impact.

Cheerios maker General Mills is considering raising prices on its products as things like grain, sugar and other ingredients become more expensive. Hormel Foods has already increased prices for Skippy peanut butter and its turkey products. Kimberly-Clark, which makes Kleenex tissues and Scott toilet paper, said price increases will cover about 60% of its product portfolio and expects the increases and more productivity to offset most of the higher raw material costs.

Soda giant Coca-Cola has said it expects to raise prices to fight higher costs, while Procter & Gamble is raising prices for baby, feminine and adult care products.

U.S. consumer prices increased a sharp 0.6% in March, the biggest uptick since 2012, while inflation over the past year jumped 2.6%. Some of the increases have been anticipated by Wall Street as the economy improves and inflation increases with it. The pace and size of inflation increases still remains a concern. Treasury bond yields spiked earlier this year, though they have since stabilized. They are being watched closely because another sharp jump could stunt the economic recovery.

“Rates are in a holding period and everybody’s curious to see if this holding period is going to last,” said J.J. Kinahan, chief strategist with TD Ameritrade.

Your Money

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Cloudy

la

68°F Cloudy Feels like 68°
Wind
2 mph SSE
Humidity
69%
Sunrise
Sunset

Tonight

Partly cloudy early with increasing clouds overnight. Low 62F. Winds light and variable.
62°F Partly cloudy early with increasing clouds overnight. Low 62F. Winds light and variable.
Wind
6 mph W
Precip
13%
Sunset
Moon Phase
Waning Gibbous