Americans wake up to rising prices

NEW YORK: After years of low, low prices, fed by near-zero interest rates in a convalescing economy, Americans are waking up to costlier consumer living.

Everyday household staples like diapers, toothpaste, shampoo and dishwashing liquid — not to mention soft drinks, cookies, chocolate, cat litter and autos — have all started getting more expensive, a trend expected to continue early next year. Announced by companies during the most recent earnings season, these price hikes have typically ranged from two per cent to 10 per cent. They also stand in stark contrast to the usually unending sales and promotions from major retailers.

The higher prices aim to pad revenues for companies like Apple, which has just raised sticker prices for its new MacBook Air laptops and iPads by 20 per cent and 25 per cent. For a growing number of businesses, they also represent a response to mounting transportation costs. A stronger US dollar is similarly cutting into foreign earnings — while a tight labor supply is at last pushing up wages. US auto giant General Motors upped the average price of its SUVs, crossovers and pickups by $800, something the company ties to rising costs for steel and aluminium — commodities on which President Donald Trump slapped steep new import duties this year.

American manufacturers are now paying eight per cent more for aluminum than they did a year ago and 38 per cent more for steel as local producers increase their prices.

Full story @ timesofoman.com/business