Inflation

Multiple reports from the WSJ, Bloomberg, and Barron’s have discussed how consumer-products companies are raising prices for many staples to offset higher input costs. Input costs have applied pressure that has been increased by global supply chain disruptions. While supply chain disruptions and higher input costs have been flagged as a potential concern for margins, a range of companies expressed confidence on Q4 earnings calls to protect profits via pricing power and continued productivity improvements. Inflation can come in a few forms, and rising commodity prices has been one that we’ve highlighted on numerous occasions. Another is just the absolute shortage of materials to deliver products. 

Dan