June consumer prices rose 5.4% from 2020, the biggest surge in 13 years. Prices rose for many products including used cars and trucks, airline fares, apparel and more.
Many companies are passing along higher costs to consumers. For example, food companies face rising costs for labor/transport, ingredients such as corn, soybean oil and wheat, and metals like steel/aluminum used in cans. Costs to transport food products are up as much as 25% from last year due to high shipping demand and a truck driver shortage. Even small businesses are doing it with 48% indicating they raised average selling prices in May, the highest share since 1981, per a survey by the National Federation of Independent Business.
In inflationary times, how can companies hold costs down? MOSIMTEC’s predictive simulation modeling can help. Explore ways to change the cost structure, reduce costs of key inputs and evaluate/test cost levers. Become more cost effective by refreshing the business model, improving the supply chain, modifying production lines or automating functions. Outdo competitors with creative cost cutting changes and do it quickly, cost effectively and virtually before making real world changes. MOSIMTEC industrial engineers and data scientists are here to help.
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Read more here: https://www.wsj.com/articles/us-inflation-consumer-price-index-june-2021-11626125947