The CEOs of major companies are increasingly talking about inflation. Here's what has 3 of them worried.
· Inflation, or increased pricing for goods, is on the rise as the economy reopens.
· Biden's administration and the Fed says the price increases should be temporary.
· But CEOs of major companies are saying that higher prices could persist.
Ayelet Sheffey, Business Insider
Jul. 15, 2021
The country is reopening and the economy is recovering from the pandemic, and while COVID-19 cases are down, prices for goods and services are on the rise. President Joe Biden's administration says this phenomenon, known as inflation, is not a cause for concern, but CEOs of major companies are warning that they'll probably keep raising prices.
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. It was fueled by big price increases for used cars, beef, and pork, and the government insists it should cool down soon.
Labor Secretary Marty Walsh told Insider in early July that he's not worried about it. "The one thing that we are not concerned about is … inflation. We're still in transition, so we're not concerned about that. So I think anytime we can push for higher wages - and the president's been very vocal on this - that's a good thing for people."
Increasingly, though, executives are saying that price increases are here to stay. Here's what they're saying:
JPMorgan CEO Jamie Dimon ...
BlackRock CEO Larry Fink ...
PepsiCo CFO Hugh Johnston ...