It’s official: Prices are rising, and it’s likely they’ll remain higher than usual in the months to come.
Today, the Department of Labor reported that the consumer price index — a measure of the change over time in prices paid for consumer goods and services — jumped 5% last month from the prior year. Economists had anticipated an increase of 4.7%. It also marks the largest advance for the figure since the 5.3% gain in August 2008, just before the last financial crisis struck the United States economy.
In recent weeks, a number of major brands and retailers have announced in their earnings calls that they have begun or plan to raise prices. According to experts, a couple factors are at play: one, related to higher material or logistics costs; and two, in regard to lower promotional activity that took place in the quarter.