Shrinkflation Trade Makes Beta Glass a Winner on Nigerian Bourse
Nigeria's cost-of-living crisis has helped make packaging company Beta Glass Plc the best performing equity on the Nigerian Stock Exchange, as companies opt for multiple product sizes to manage higher costs.
The unit of Athens-based Frigoglass SAIC has risen 254% this year to 230 naira per share — vastly outperforming an overall index up just 11% — amid strong demand for various sizes of containers as companies shrink product size to counter rapid inflation.
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Forbes
an hour ago
- Forbes
Experts Say Retail Inflation Fears Have Moderated. Don't Believe It.
The inflation from tariffs takes time to arrive. getty The Wall Street Journal reports that the 2.4% (annualized) inflation in retail consumer prices in May was lower than expected and defies 'fears that the impact of President Trump's tariffs would start to show a rise in prices.' The New York Times says inflation is 'muted, with limited effects from tariffs.' Don't listen. There's a lot of reasons why the information for May is not indicative of what will happen the rest of the year. Here's why: When manufacturers abroad increase prices, it takes time to go through the system. Goods ordered today typically don't get delivered for another 90-180 days. That's the primary reason why inflation for May is moderate. The products being bought today were ordered and delivered before higher tariffs ever happened. But there are other reasons. Brands and wholesalers usually do everything they can to avoid price increases. As long as they're still selling older inventory that came in at lower tariff rates, they are going to hold off on increasing prices. The CEOs I talk to in the supply chain are trying to hold the line. They are sharing the cost of the tariffs among manufactuers, wholesalers and retailers so that they don't have to raise prices. That can work for a little while but it's not going to work for very long. There's also another short-term factor that's holding prices low. Wholesalers, brands and retailers are bringing out their slow-moving inventory. Because it can be sold at the old pre-tariff price, it's more attractive now than ever. Those less fashionable, slow-selling products are increasing the supply which is holding prices down. It's another short-term fix and it won't last for long. Because of timing, the inflation from tariff increases will show up at your local retailer in the third and fourth quarter. You will start to see it in the back-to-school season. It won't be in school basics that are ordered from manufacturers well in advance, like pencils and uniforms. You'll see it in discretionary items that are ordered closer to delivery dates, like licensed products or the latest toys. The fourth quarter is where the real impact will come. That's when almost no products on store shelves will have pre-tariff prices and increases will be unavoidable. While tariffs are the main driver of price increases, they aren't the only driver. The uncertainty around tariffs has made retailers very conservative. They are holding back on commitments to large orders of discretionary items. The things you want most won't be available to late shoppers or they may be more expensive. That conservative approach means less excess inventory this year, fewer sale items and fewer day-after items available. That will put upward pricing pressure on retailers and facilitate price increases. Coupled with the increased costs from tariffs, prices can only go in one direction and that's up. When you look at how consumers are acting, you can see it. Discretionary item sales in many categories were up a lot in April, as was foot traffic in stores. Consumers are advancing their purchases to beat the increases. Inflation is a self-accelerating phenomenon. The expectation of inflation causes workers to ask for more wages and their employers have to raise prices and the cycle keeps on going. Breaking the cycle is the challenge. Any basic cost increase including tariffs will push the inflationary cycle. It's on its way here and you will see it in good time.
CNN
an hour ago
- CNN
Jamie Dimon: The economy could ‘deteriorate' soon
JPMorgan Chase CEO Jamie Dimon warned on Tuesday that encouraging economic data could soon turn worrisome as President Donald Trump's tariffs continue to bite. 'You're going to see real numbers, and I think there's a chance real numbers will deteriorate soon,' Dimon said, according to a FactSet transcript of the Morgan Stanley US Financial Conference in New York. Trump's tariffs have yet to really affect data like monthly inflation and jobs reports, but the economy is prone to a downturn if that changes, he said. Wall Street has been eager for any sign the economy might muddle through the confusion stoked by Trump's tariffs, even as tremendous uncertainty lingers. It will likely be a few months before the full impact of tariffs on business decisions, hiring and inflation show up. Consumer sentiment and the stock market have both rebounded from peak uncertainty in early April, Dimon said, but it's important to recognize that neither 'consumer sentiment nor businesses' ever determine the key 'inflection points' for how the economy is faring. The hard data, like job growth and inflation, is what matters most, Dimon said. 'You haven't seen an effect yet other than in the sentiment,' Dimon said. 'And maybe in July, August, September, October, you'll start to see, did it have an effect? My guess is it did, hopefully not dramatic.' 'Employment will come down a little bit. Inflation will go up a little bit,' Dimon said. 'Hopefully, it's just a little bit.' The latest Consumer Price Index data showed inflation cooled more than expected in May. But Dimon said he's worried about inflation and economic growth because Trump's tariffs and deportations could change things. He also added that lower immigration to the US could hurt the economy. 'These are a lot of moving parts,' he said. 'The buts are real, and I am not trying to be negative,' Dimon said. 'You have all these really complex moving tectonic plates around trade, economics, geopolitics.' He added that the impact of tariffs might disrupt the economy but won't make the 'ship go down.' 'I'm not going to worry too much about those fluctuations, except the big ones, the military alliances, the global economic alliances that matter to the future of United States of America,' Dimon said.
CNN
2 hours ago
- CNN
Jamie Dimon: The economy could ‘deteriorate' soon
JPMorgan Chase CEO Jamie Dimon warned on Tuesday that encouraging economic data could soon turn worrisome as President Donald Trump's tariffs continue to bite. 'You're going to see real numbers, and I think there's a chance real numbers will deteriorate soon,' Dimon said, according to a FactSet transcript of the Morgan Stanley US Financial Conference in New York. Trump's tariffs have yet to really affect data like monthly inflation and jobs reports, but the economy is prone to a downturn if that changes, he said. Wall Street has been eager for any sign the economy might muddle through the confusion stoked by Trump's tariffs, even as tremendous uncertainty lingers. It will likely be a few months before the full impact of tariffs on business decisions, hiring and inflation show up. Consumer sentiment and the stock market have both rebounded from peak uncertainty in early April, Dimon said, but it's important to recognize that neither 'consumer sentiment nor businesses' ever determine the key 'inflection points' for how the economy is faring. The hard data, like job growth and inflation, is what matters most, Dimon said. 'You haven't seen an effect yet other than in the sentiment,' Dimon said. 'And maybe in July, August, September, October, you'll start to see, did it have an effect? My guess is it did, hopefully not dramatic.' 'Employment will come down a little bit. Inflation will go up a little bit,' Dimon said. 'Hopefully, it's just a little bit.' The latest Consumer Price Index data showed inflation cooled more than expected in May. But Dimon said he's worried about inflation and economic growth because Trump's tariffs and deportations could change things. He also added that lower immigration to the US could hurt the economy. 'These are a lot of moving parts,' he said. 'The buts are real, and I am not trying to be negative,' Dimon said. 'You have all these really complex moving tectonic plates around trade, economics, geopolitics.' He added that the impact of tariffs might disrupt the economy but won't make the 'ship go down.' 'I'm not going to worry too much about those fluctuations, except the big ones, the military alliances, the global economic alliances that matter to the future of United States of America,' Dimon said.
