The cost of goods are rising at every step in the production process. Prices for commodities like oil and crops have increased this year, which has resulted in a rise in transport prices. This has left trucking companies with fewer drivers to take goods to factories and construction sites which has led to higher costs.
As a result, companies are having to charge more for their products. This includes food and consumer products like foil wraps and paper cups. Kellogg, maker of Frosted Flakes, Cheez-Its and Pringles, said Thursday that higher costs for ingredients, labor and shipping are pushing up prices.
Companies haven’t seen this kind of inflation in many years.
All this is resulting in companies increasing prices to the end-consumer.