Expecting you to pay more for some of your favorite cereals, snacks, soups and brands at breakfast next year, General Mills notified retail customers that it was raising prices in mid-January on hundreds of items across dozens of brands.

The company stated that for some items, prices will rise by about 20% at the beginning of next year. A leader at the company said he plans to pass on all the increases to grocery and convenience store customers. He expects they will then pass it on to shoppers.

And if more General Mills customers – including department stores, supermarkets, drug stores and other chains in the US – decide to do the same, those familiar brands will become more expensive for shoppers.

General Mills’ plans are the latest evidence that high prices aren’t going away anytime soon for some of the most popular food and homeware brands. The company is the latest consumer manufacturer to announce a price hike early next year.

Grocery prices have risen sharply during the pandemic, after stagnating from 2015 through 2019. Prices jumped 1% in October from September and were 5.4% higher than at the same time last year, according to the latest data from the US Bureau of Labor Statistics.

Inflation in food, beverages and household essentials will rise to 8% during the first half of 2022 before stabilizing at 4% during the latter half of the year, according to projects by market research firm IRI. The index tracks prices, points of sale, volume data, promotions and trends in supermarkets, wholesale clubs, supermarkets, pharmacies and other consumer channels.

Food manufacturers and grocery chains have faced higher costs for goods, labour, transportation and other expenses during the pandemic. These costs have also escalated in recent months, prompting them to raise prices to reduce the impact.

The Producer Price Index, which measures the prices that manufacturers receive for their goods and services, jumped 0.6% last month compared to September and rose 8.6% annually.

General Mills said in the letters that it was responding to rising material and labor costs. “The current operating environment is characterized by the dynamism that we have seen for at least a decade, which has resulted in significant input cost inflation, labor shortages and business service challenges,” she added.

In September, the company said it expected its input cost inflation to range between 7 and 8 percent in fiscal 2022.

At the same time, rising inflation does not affect all shoppers equally. “Inflation has been more painful for lower-income households,” Bank of America economists said in a recent research report. “This is because they are more exposed to goods that are rising in price faster, such as gas and rent, and they save less than higher-income groups.” .

Some grocery chains also raise prices more quickly than competitors, depending on how much flexibility they have to deal with higher costs.

Walmart, the largest US grocer, said the price gaps with competitors are larger than they were before the pandemic because the company is absorbing some of the costs rather than moving them on. Walmart accounted for 29% of General Mills sales over the past year.

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