J.P. Morgan: Proportion of US firms planning to raise prices is at record levels

J.P. Morgan: Proportion of US firms planning to raise prices is at record levels

Inflatie
Inflatie (02)

October’s US consumer price index (CPI) reading shows that prices rose at their fastest pace since 1990.

Now at 6.2% year on year, headline inflation came in above expectations and suggests inflationary pressures are broadening out, reflecting a pickup in less volatile components as well as the ongoing impact of supply shortages on prices.

Price gains for motor fuel and used car sales are likely to come down eventually but even excluding these, inflation would still have been in excess of 3.5%.

Businesses are facing higher input costs owing to ongoing supply shortages as well as growing wage pressures.

For now, firms do appear to hold pricing power and rising costs are being passed onto consumers against a backdrop of strong demand, which ultimately should be a good thing for corporate profits as we head into 2022.

% of surveyed companies, three-month moving average

1511 JPMorgan

Source: National Federation of Independent Business, Refinitiv Datastream, J.P. Morgan Asset Management. Data as of 12 November 2021.