- Inflation surged 0.9% from May to June, sparking concerns for CEOs of major companies.
- Biden has said elevated inflation is only temporary, but some CEOs think it could persist.
- To offset inflation, some of those execs said they’ll be increasing prices on daily consumer goods.
While the economy is showing promising signs of recovery, adding 850,000 payrolls in June, inflation is also on the rise, concerning some economists and executives. To balance it out, CEOs are saying they will have to raise prices on their goods.
The Bureau of Labor Statistics’ monthly Consumer Price Index release showed that inflation in June was much higher than expected, with prices surging 0.9% over May, the highest month-over-month inflation rate since April 2008’s 1.0% increase. And while President Joe Biden’s administration is confident this surge is only temporary, some economists and CEOs of major companies suggest otherwise.
For example, JPMorgan Chase CEO Jamie Dimon said during an earnings call on July 13 that inflation “could be worse than people think.”
“I think it’ll be a little bit worse than what the Fed thinks,” Dimon said. “I don’t think it’s only temporary.”
Grocery prices are rising: Expect these 5 foods to cost more this summer
Bacon — up 15.6%.
Whole milk — up 11.2%.
Eggs — up 5.7%.
Ground coffee — up 1.9%.
Bananas — up 1.2%.
That’s the list!
Personally there’s very few items I shop for that haven’t gone up in price.