Procter & Gamble is raising the prices of some consumer products as the household goods behemoth grapples with higher commodity costs.
With manufacturing expenses climbing for products like diapers, the owner of the Pampers and Always brands has started implementing price hikes in the baby care, feminine care and adult incontinence categories. The increases, to take effect by September, could be in the mid- to high-single digit percentages, the company said Tuesday as it reported third-quarter earnings.
P&G will make the adjustments “where it’s necessary” to offset certain costs, Chief Operating Officer Jon Moeller said in an interview. The company also plans to focus on product innovation “so that we actually improve consumer value as we implement that pricing.”
Moeller cited higher pulp and oil-related prices as a factor, and said that across the board, “this is one of the bigger increases in commodity costs we’ve seen.”
The moves, which affect retailers and may be passed on to customers, underscore the growing consumer impact of inflationary pressures as commodity prices increase and shipping challenges drive up costs for manufacturers. Coca-Cola Co. said this week that it expects prices to rise globally beginning this quarter, while Kimberly-Clark has already started notifying customers of similar plans for North America.