U.S. companies are raising prices on everything from plane tickets to paint, passing on higher costs for fuel, metal and food to their customers after years of low inflation, the Wall Street Journal reported. Coca-Cola Co. and Arconic Inc. yesterday said that they raised prices in the third quarter. Top airlines, manufacturers and food makers have also announced price hikes over the past week. The higher prices have effectively ended a long period of low inflation that led the Federal Reserve to keep short-term interest rates near zero for years. Unemployment is at the lowest point in decades, and economic growth is strong. Now inflation is near the Fed’s 2 percent target. Prices could climb higher if pressure from labor shortages and tariffs intensify. Or other factors could offset these pressures, including the stronger U.S. dollar, which makes imports cheaper.
