Wholesale Prices Show Another Big Increase

The Consumer Brands Association cautioned that rising costs on manufacturers have not slowed and show no signs of doing so. Citing data from the Bureau of Labor Statistics last week, The April Producer Price Index showed an 11% year-over-year rise. For food specifically, wholesale prices rose 14.5%nt, showing the outsized impact consumer packaged goods companies are feeling.

Consumer Brands President and CEO Geoff Freeman said, “This is the 14th straight month that we’ve seen wholesale prices push above the historical trend line.” Freeman added, “The percentages may fluctuate month-to-month, but the story has remained the same — the cost to make and ship goods is out of control.”

Since the pre-pandemic era, wholesale costs for the industry have increased 35%. The spike significantly impacts industry operations, as approximately 70% of CPG companies’ costs come from ingredients and energy. Further, key commodities showed sharp increases over last April, along with freight and fuel.

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