Diaper prices were already soaring and now 2 diaper giants just announced they're about to get even more expensive
- Two major diaper manufacturers said they are increasing prices.
- Diaper prices already rose nearly 10% over the past year.
consumer goodsare becoming more expensive because of supply chaindisruptions.
Prices of furniture, household necessities, electronics, and nearly all other consumer goods are set to rise this year in a "perfect storm" of shipping delays, supply chain disruptions, and changes to demand because of the pandemic.
In an April earnings call, Proctor & Gamble said that it has already started raising prices of some household goods, including diapers. Further price increases will be added in September in the "mid-to-high single-digit percentages," the company said.
"This is one of the bigger increases in commodity costs that we've seen over the period of time that I've been involved with this, which is a fairly long period of time" Proctor & Gamble operating chief Jon Moeller said of his 33-year career.
Kimberly-Clark, the producer of
Diaper costs rose 8.7% over the 12-month period ending on April 10, CNN reported. Further increases are likely to put additional financial pressure on low-income families. One in three US families had difficulty affording diapers before the pandemic, according to the National Diaper Bank Network. In 2020, the organization distributed 100 million diapers, a 67% increase over the previous year. Federal assistance programs like SNAP and WIC cannot be used for diapers, furthering the need.
Extreme congestion at ports is partially to blame for the increase in diaper prices. Ships carrying millions of dollars of imports are stuck waiting weeks to unload, leading to shortages and long waits. A global shipping container shortage is also making the process more expensive as container costs have tripled over the past year.
Diapers are far from the only products affected as consumers continue to spend money on goods over services. Bikes, cars, meat, cheese, and even ketchup are all becoming more expensive. Goldman Sachs analysts predict that increased prices will continue through at least the end of 2021 as the supply chain continues to grapple with disruptions and unpredictable demand.
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