U.S. Companies Bet Shoppers Will Keep Paying Higher Prices

THE WALL STREET JOURNAL:

Some of the world’s biggest companies are betting consumers will keep paying more for products from coffee to toilet paper.

Corporate giants including Procter & Gamble Co. PG 1.08% , Nestlé SA NSRGY 0.30% and Verizon Communications Inc. VZ -0.86% say they plan to continue raising prices or pushing customers to buy more expensive products into 2022 to offset fast-growing costs amid a global supply-chain crisis. Gillette razors, Nestlé coffee and Chipotle burritos are among the products that could get more expensive in coming months.

Price increases so far have paid off for makers of household staples as shoppers, particularly in the U.S. and Western Europe, have remained loyal to big-name brands.

Now companies are counting on customers to lift sales and offset higher costs that have stressed their bottom lines, even as broader inflationary pressures mount and some analysts question whether shoppers will start to seek cheaper alternatives.

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