Sunday, July 27, 2008

Manufacturers like Johnson & Johnson and Hasbro raise prices, pressuring retailers to do same

As costs rise, inflation's next front is retailers

Coming to a store near you: Even higher prices. Most inflation this year has come from food and fuel, as retailers resisted passing along to strapped consumers the higher prices manufacturers charged them, but coming increases from companies such as Johnson & Johnson and Hasbro Inc. may leave them with no choice.

Posted by stevie dee @ 06:56 PM (787 views)
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4 thoughts on “Manufacturers like Johnson & Johnson and Hasbro raise prices, pressuring retailers to do same

  • No doubt this will increase the RPI over here, but can anyone give their best guess as to how high it will actually go?

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  • Mytimeisnigh says:

    This is gonna be one hell of a ride.

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  • Hasbro Inc source virtually all their plastic toys from China, looks like the end of the road for cheap tat for the kids then.

    Johnson & Johnson are slightly different though as most of their products are made in Western Economies and are aimed at Babies.

    Strikes me that this story was written by someone with young children!

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  • Toys and shampoo bottles are both made of plastic, which is made from oil. I can’t find any precise figures but what I’ve seen suggests 1 litre of crude oil = 1/2 kg of plastic. Doing a few more calculations, I get 1/2 kg of plastic is more or less $1 – compared to $0.50 last year when oil was half today’s price. So that would have a significant impact on prices of toys and plastic bottles.

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