Consumer Goods Companies Walk a Tightrope as Inflation Surges

Consumer Goods Companies Walk a Tightrope as Inflation Surges
Products are displayed at a Levi Strauss store in New York, on March 19, 2019. Shannon Stapleton/Reuters
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Big global brands Pepsico Inc. and Levi Strauss & Co. told investors this week they offset inflation with price increases, but rising costs of everything from aluminum to cotton signal tighter times ahead for consumer goods companies.

Freight costs and raw material prices have surged this year across industries due to global supply chain disruptions, squeezing profit margins at companies looking to recover from the impact of the COVID-19 pandemic.