The Consumer Price Index, which tracks inflation, went up higher last month than at any time since 2012. Inflation was at 0.6% which annualizes to 7.2%.
To learn more, Fox Business featured Isaac Larian, CEO of MGA Entertainment, and Arnold Kamler, Chairman and CEO of the Kent International Bicycle Company. Here are my takeaways:
According to Isaac Larian:
Toy prices are up 23%.
He is unable to find sufficient labor for his American factory.
He predicts inflation will be up double-digits by the fourth quarter.
He showed one of his dolls and stated that it would rise from a retail of $26.99 to $29.99.
According to Arnold Kamler:
His company has experienced 30% increases in the cost of aluminum and steel over the last six months to one year.
The retail prices for his company’s bicycles will be up 25% to 30% by year-end.
His company is paying a 25% tariff on every bicycle they import.
Both gentlemen state:
Retailers understand and are accepting price increases (although not without a fight) because they are getting hit with them by all vendors. They also note that some major retailers do their own sourcing in China and know first-hand about price increases.
Click on the below video to hear the entire interview.