The American company is once again starting a new round of price increases.
Many companies, from Levi Strauss & Co. to Wei Chao Mei, have announced price increases at the beginning of this year for products ranging from blue jeans, spices, home goods, to industrial products. After maintaining prices for several months, companies of all sizes have started a new round of price hikes, with some increases reaching high single-digit percentages. Last year, some companies raised prices after the increase in tariffs raised costs. However, starting in the fall, many companies temporarily halted price increases, sometimes even offering discounts to attract holiday shoppers. The pause in price hikes has now ended. Many companies typically raise prices at the beginning of the new year. However, UBS economist Alan Detmeister stated that in January, the prices of electronics, appliances, and other durable goods seemed to be rising stronger than normal levels. Some companies attribute the price hikes to tariffs, while others, especially small businesses, blame wage increases and high healthcare costs that they say they cannot absorb on their own or share with suppliers. Harvard Business School professor Alberto Cavallo tracks daily online prices for major U.S. retailers. According to data he collected up to February 10th, the prices of the most affordable imported goods have risen by 2.3% since the end of November. The Adobe Digital Price Index found that driven by price increases in electronics, computers, appliances, furniture, and bedding, online prices in January saw the largest monthly increase in twelve years.
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