Latest news with #pricehikes
Yahoo
19 hours ago
- Business
- Yahoo
Price hikes may soon bite as firms sell off pre-tariff inventory, says global business group
LONDON (Reuters) -Tariff-related price hikes may start to bite at the end of the third quarter as companies may by then have sold off U.S. stockpiles built up ahead of the new duties, according to the International Chamber of Commerce. Businesses making everything from cars to drugs and cheese and wine have expedited deliveries to the United States this year to get ahead of U.S. President Donald Trump's tariffs. They have about four months of inventory, about one month more than average, Andrew Wilson, International Chamber of Commerce deputy secretary general, estimated on Thursday, helping some delay hiking prices. "You could expect it to bite at the end of Q3," he told Reuters once they have sold off that inventory. Wilson previously forecast tariff-related price hikes would show up in U.S. inflation in the fourth quarter or early next year. Data on Thursday showed U.S. inflation increased in June as tariffs started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half. Some of the world's biggest companies have warned for months that they would be squeezed by duties. They have now started to outline how they plan to pass on the costs and change their businesses to try to cushion the blow of rising costs, uncertainty over U.S. trade policy, and waning consumer confidence. Companies are testing how much they can pass tariffs onto U.S. customers. But global retailers including sandal maker Birkenstock and jeweller Pandora have also looked at raising prices across multiple markets to avoid hurting U.S. sales. "There's a logic taking hold that (price hikes) won't be just borne by the U.S. consumer," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
a day ago
- Business
- Daily Mail
Food price inflation could rocket to six per cent in the next five months due to Labour's budget, retail experts warn
Food price inflation is set to skyrocket to six percent by the end of year due to Labour's previous budget and could pose 'significant challenges' to households, retail experts have warned. The British Retail Consortium (BRC) has predicted food inflation, which currently sits at four percent, will rise by two percent in the next five months. Over half of retail chiefs, representing over 9,000, told a survey carried out by the industry body that they feel 'pessimistic' about upcoming year, an are expecting more price rises. And most, 85 per cent, blamed price rises on Rachel Reeves ' budget plans, which saw the Chancellor increase employer national insurance and the national living wage in April. The BRC said of the predicted rise in food costs: 'This will pose significant challenges to household budgets, particularly in the run-up to Christmas.' Nearly half of chief financial officers also revealed they had frozen hiring, while 38 percent had lowered the number of in-store jobs, which was further supported by official job figures. In the first quarter of 2025, there were almost 100,000 fewer retail jobs in comparison to the previous year, according to the BRC. And while a third of CFOs confessed they had slashed local community investment, another 15 percent had delayed opening new branches. BRC chief executive Helen Dickinson told The Independent: 'Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. 'Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. 'The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. 'It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide.' Last January, the industry body anticipated food prices would skyrocket, on average, by 4.2 percent towards the tail end of the year, as retailers grappled with heightened costs as a result of the budget. Ms Dickinson previously said analysis from both industry heads and the trade association suggested there was 'little hope of prices going anywhere but up' due to national living wage and national insurance hikes. Last week, Worldpanel by Numerator, a market research firm previously known as Kantar, said grocery prices were soaring at the fastest rate in the last year and a half. In the four weeks to July 13, food cost inflation rose to 5.2 per cent, up from 4.7 per cent the month prior - the highest since January 2024. Shoppers are predicted to spend £275 more annually on average, according to the market research firm.
Sky News
a day ago
- Business
- Sky News
Budget: Christmas food price shock looms, chancellor warned
Food inflation will rise to 6% by the end of the year - posing a "significant challenge" to household budgets in the run-up to Christmas, industry leaders have predicted. The British Retail Consortium is warning that the chancellor risks "fanning the flames of inflation" if she hikes taxes in the coming budget. Despite intense price competition between supermarket chains, the BRC has sounded the alarm over the pace of grocery price hikes. As of this month, food inflation has risen 4% year on year - its highest level since February 2024. The BRC said this increase is linked to global factors, such as high demand and crop struggles. Beef, chicken and tea prices are among those that have risen the most this year - but some of the blame is being laid squarely at the chancellor's door too. The BRC said it was inevitable that a £7bn burden, through changes to employers' national insurance contributions and minimum pay rules after last October's budget, had been partly passed on to customers in the form of higher prices. 2:29 It published the results of a survey of retail industry finance chiefs to illustrate its point - that nerves about what Ms Reeves's second budget could bring were not helping companies invest in either new employment or prices. Business was promised it would be spared additional pain after it was put on the hook for the bulk of the chancellor's tax-raising measures last year. However, speculation is now rife over who will feel the pain this autumn as she juggles a deterioration in the public finances. 3:33 A widening black hole is estimated at around £20bn. The cost of servicing government debt has risen since the last budget, while U-turns on welfare reforms and winter fuel payment cuts have made her job even harder - making further tax-raising measures inevitable. The survey of chief financial officers for the BRC showed the biggest current fear ahead was for the "tax and regulatory burden". Two-thirds of the CFOs predicted further price rises in the coming year, at a time when the headline rate inflation already remains stuck way above the Bank of England's target of 2%. It currently stands at 3.6%. Helen Dickinson, chief executive of the BRC, said: "Retail was squarely in the firing line of the last budget, with the industry hit by £7bn in new costs and taxes. "Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. "The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. "It is up to the chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide." She concluded: "Retail accounts for 5% of the economy yet currently pays 7.4% of business taxes and a whopping 21% of all business rates. "It is vital the upcoming reforms offer a meaningful reduction in retailers' rates bill, and ensures no store pays more as a result of the changes."
Yahoo
a day ago
- Business
- Yahoo
Procter & Gamble Names Shailesh Jejurikar as Next CEO Amid Tariff Challenges
P&G is undergoing a leadership change at the very top as the consumer goods giant said price hikes are on their way amid the ever-evolving tariffs landscape. Shailesh Jejurikar, currently chief operating officer, will succeed Jon Moeller as president and CEO, effective Jan. 1. Moeller will become executive chairman of P&G, whose brands include Pampers, Tide, Gillette and SK-II. More from WWD How to Achieve Belly Conklin's 'The Summer I Turned Pretty' Minimal Makeup Look Skims Just Launched a Face Sculpting Wrap to Make Your Jawline Look Snatched Kulfi Beauty Is Proud of Its South Asian Roots, Now It's Coming to the U.K. Jejurikar joined P&G in 1989 and has been a member of P&G's global leadership team since 2014, holding various senior leadership roles in categories, sectors and regions. 'P&G people, our brands, and our capabilities in innovation and operational excellence fuel my confidence for a future of sustained growth and value creation,' said Jejurikar. 'It has been an honor to serve as CEO of P&G, and I am incredibly proud of the value created by the people of P&G through an integrated strategy that is being executed with excellence,' added Moeller. 'I look forward to supporting Shailesh and the entire team as they continue to improve the performance and value of P&G brands and categories to win with consumers and customers around the world.' The news came as the company said it would increase prices on around a quarter of items. 'At these rates, tariffs alone are a 5-point headwind to core EPS growth in fiscal 2026. We will look for every opportunity to mitigate these impacts, including sourcing flexibility, productivity improvements, and pricing with innovation in affected categories and markets,' said Moeller during an earnings call. Its fiscal 2026 outlook includes $1 billion before tax in higher costs from tariffs based on rates announced since July 9, Moeller explained. 'You can think about the tariff impact in three buckets. About $200 million from materials and products imported from China to the U.S. Another $200 million from Canada's tariffs on goods shipped from the U.S. And the remaining $600 million from tariffs on goods coming to the U.S. from the rest of the world.' The company reported fiscal year 2025 fourth-quarter net sales of $20.9 billion, up 2 percent versus the prior year and a touch above Wall Street estimates. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, also increased 2 percent. Diluted net earnings per share were $1.48, an increase of 17 percent. Analysts had penciled in $1.42. Within that, beauty segment organic sales rose 1 percent year-over-year, while hair care organic sales were unchanged as growth in Latin America and Europe was offset by volume declines in North America and Greater China. Personal Care organic sales increased low-single digits and skin care organic sales were unchanged. Grooming segment organic sales increased 1 percent versus year ago. 'We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment,' said Moeller. 'In fiscal 2026, we expect to deliver another year of organic sales growth, core EPS growth and strong adjusted free cash flow productivity.' Best of WWD Which Celebrity Brands Are Next for a Major Deal? Lady Gaga, Beyonce and More Possible Contenders for the Next Corporate Prize The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
2 days ago
- Automotive
- CTV News
Porsche, Aston Martin hike U.S. prices as hopes for tariff sweeteners fade
A long line of unsold 2023 luxury sports-utility vehicles and coupes sits at an Aston Martin dealership Sunday, Aug 27, 2023, in Highlands Ranch, Colo. AP, David Zalubowski BERLIN — European luxury carmakers including Porsche and Aston Martin have shot to the front of the grid with U.S. price hikes, which could point the way for bigger brands to follow in their wake as companies pass on the cost of tariffs. The United States and Europe reached a trade deal that will see EU-made cars hit with a 15 per cent tariff from August, lower than once threatened but far higher than the 2.5 per cent rate before U.S. President Donald Trump launched his trade offensive this year. On Wednesday, Volkswagen's luxury brand Porsche said it had raised U.S. prices by between 2.3 and 3.6 per cent in July, with no plans for now to establish a U.S. production presence - a move that would let it avoid the levies. 'This is not a storm that will pass,' Porsche CEO Oliver Blume said after the company cut its full-year profit target and flagged a US$462 million hit from tariffs in the first half. 'We continue to face significant challenges around the world.' U.S. tariffs have pummeled global automakers, forcing companies such as GM, Volkswagen, Hyundai and Mercedes-Benz to book billions of dollars of losses, issue profit warnings, slash forecasts and raise prices. Japanese carmaker Nissan reported a US$535 million quarterly loss on Wednesday, hit by U.S. tariffs, restructuring and lower sales volumes. British sports-car maker Aston Martin said it had made incremental price increases in the United States since last month, issuing a profit warning citing a hit from U.S. import tariffs and prolonged suppressed Asian demand. Additional costs While bigger carmakers have so far held off, other sectors have seen price hikes as companies have looked to pass on the additional cost of tariffs. Analysts said larger carmakers could do similar in the second half of the year. 'Into H2, we are looking to gain additional visibility with regards to the ability of Mercedes-Benz and the rest of the premium OEMs to increase prices in the U.S. in order to offset the impact of tariffs,' J.P. Morgan said in a note. European carmakers are also getting less optimistic that they could seal extra sector-specific tariff reductions, resigned to dealing with the 15 per cent rate. Mercedes CEO Ola Kaellenius told analysts on Wednesday that the group was assuming tariffs would remain at 15 per cent, throwing cold water on hopes companies may be able to negotiate individual deals. 'For all intents and purposes, that global deal for now is it,' said Kaellenius, also president of Europe's car lobby ACEA. Any side deals were 'very uncertain.' Volkswagen had said last week it was hoping investment commitments could help it negotiate lower U.S. tariffs. But Porsche CEO Blume, also head of VW, suggested there would not be a separate U.S. deal for the automotive sector. 'I agree with Ola Kaellenius' assessment that there will not be a separate automotive deal,' Blume said. --- Reporting by Alessandro Parodi, Amir Orusov, Rachel More and Shashwat Awasthi; Additional reporting by Ilona Wissenbach; Editing by Adam Jourdan and David Holmes
