Tide drives up laundry detergent prices

new York
CNN Business

It will cost you more to wash your clothes.

Procter & Gamble said Wednesday it will raise prices by about 8% on average to retail customers next month for its Tide and Gain laundry detergents, Downy fabric softener and Bounce dryer sheets.

If retailers decide to pass any of the increases, the additional household products will be more expensive for shoppers. Consumer prices in the United States rose 7% a year in December, the biggest price increase in 39 years.

P&G said it was raising its prices to offset some cost pressures, including transportation, labor and the raw materials it uses to make its products. The US producer price index, an indicator of prices paid by manufacturers, rose 9.7% annually.

“The transport and labor markets remain tight. Material availability remains tight,” P&G CEO Jon Moeller said on a call with analysts Wednesday. “In some categories and in some markets, inflationary pressures are widespread with little sign of near-term relief.”

P&G makes many of the most recognizable brands in American homes, such as Gillette, Charmin, Bounty, Pampers and Crest.

Moeller said P&G had raised prices for its 10 U.S. product categories and told retailers on Tuesday it would raise prices for some personal health care brands in April, though he didn’t. specify which ones. (P&G makes Metamucil, Neurobion, Pepto-Bismol, and Vicks.)

P&G expects higher prices to drive sales growth in the coming months as its increases take effect.

Although consumers are already paying more for many household products, demand remains strong, he said. “We did not see any noticeable changes in consumer behavior.”

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