Rising prices taking toll across all areas of economy
Cincinatti ? While prices at the gas pumps get a lot of attention, other increases are pulling at Americans’ pocketbooks from a variety of directions.
“We see it daily as far as everything we need for the kids; groceries, the little one still in diapers; anything that has to do with the house,” said Mary Ann Ray, 32, a registered nurse and mother of two in suburban Union Township just east of Cincinnati.
Besides spending $10 to $15 more to fill up her minivan than she did a year or so ago, she ticks off a litany of other higher prices squeezing the once-comfortable household budget of her and her husband, the product development director for an educational software company. They include over-the-counter drugs, delivery pizzas, baby formula.
“It’s all the little things,” she said. “What I see is that you get your typical raises for work, but it seems like everything gets more expensive.”
The ripple effect into the everyday economy as big companies try to offset increased costs for energy, transportation and raw materials is a creeping inflation that economists are watching, as the Federal Reserve balances inflation concerns against a slowing economy. While recent economic data indicated that inflation pressures are easing, consumer surveys show inflation worries are contributing to declining confidence about the economy.
And more price increases are coming.
In summer earnings reports, company after company has reported plans to pass along some of their higher costs in pricing of some or most of their products, from Energizer Holdings Inc.’s batteries to Eastman Kodak Co. film; Whirlpool Corp. appliances to Clorox Co. household cleaners; Anheuser-Busch Cos. Inc. beer to meals in some Buffalo Wild Wings Inc. restaurants.

Mary Ann Ray pays for haircuts for daughter Marisa, 5, and son Ethan, 2, both at right, at Cookie Cutters children's hair salon in Batavia, Ohio. Costs of a variety of goods and services have risen recently, although prices at the gas pumps have gotten the most attention.
Some small businesspeople are feeling the ripples, too.
“My costs have gone up. Shipping has definitely gone up,” said Toni Sander, who sells gourmet foods and coffees, gift baskets and fine wines at her store, The Wine List, in the northern Cincinnati suburb of West Chester. “Shipping bills are half the cost of some of the food orders.”
The federal Labor Department reported a July core consumer inflation increase of 0.2 percent, the lowest in five months. But core inflation, which excludes energy and food, has risen by 2.7 percent over the past 12 months.
Jay McIntosh, Chicago-based Americas director for retail and consumer products for Ernst & Young, said while the costs of gasoline, health care, college tuition and other areas have been rising steadily for years, some everyday items are climbing now, too.
“I think consumers are feeling it a little more day to day,” McIntosh said. He said that large companies that have kept prices down by cutting back internally or increasing productivity are facing increasing pressure because of spiraling energy and commodity prices fueled partly by growing consumption by China.
“It seems like right now, it’s a little bit more difficult to keep from raising prices,” McIntosh said.





