New York CNN Business —
It’s going to cost you more to wash your clothes.
Procter & Gamble said Wednesday that it was raising prices by an average of about 8% on retail customers next month for its Tide and Gain laundry detergents, Downy fabric softener and Bounce dryer sheets.
If retailers decide to pass off any of the increases, additional household staples will be pricier for shoppers. US consumer prices rose 7% annually in December, the steepest climb in prices in 39 years.
P&G said it’s raising prices to offset some cost pressures, including transportation, labor and commodities it uses to manufacture its products. The US producer price index, a gauge for prices manufacturers are paying, rose 9.7% annually.
“Transportation and labor markets remain tight. Availability of materials remain stretched,” P&G CEO Jon Moeller said on an analyst call Wednesday. “In some categories and in some markets, inflationary pressures are broad-based with little sign of near-term relief.”
P&G makes many of the most recognizable brands in US homes, such as Gillette, Charmin, Bounty, Pampers and Crest.
Moeller said P&G has raised prices on all 10 of its product categories in the United States and told retailers Tuesday it will be increasing prices on some personal health care brands in April, although he didn’t specify which ones. (P&G makes Metamucil, Neurobion, Pepto-Bismol and Vicks.)
P&G expects the higher prices will 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 haven’t seen noticeable changes in consumer behavior.”