Their coyness notwithstanding, many of Mr Adamczyk’s and Mr Berkley’s fellow bosses are bracing for a period of higher costs.Some inputs remain scarce while clogged supply chains are being reconfigured for a reopening economy.At the same time, demand is surging from American consumers, who are flush with unspent pandemic-year savings, augmented by stimulus cheques from the government.To deal with the resulting price pressures, firms are adapting their corporate tactics accordingly.In the 1970s companies responded to rising input prices in a number of ways.First, they passed as much of the higher costs as possible on to customers.When that strategy was exhausted, they turned to automating operations or moving them to places with cheaper labour, either elsewhere in America or abroad.Businesses are now dusting off that old formula, starting with price rises.In April Coca-Cola told analysts that its soft drinks are about to become more expensive,and Whirlpool warned that the same was going to happen to its washing machines and other appliances.Procter & Gamble plans to raise the prices of some of its consumer products by “mid to high single digits” in September.On June 8th Chipotle confirmed it had increased menu prices at its Mexican-grill restaurants by as much as 4%.
