Elasticity refers to how easily customers change their shopping behavior in response to higher prices. “So far, we haven’t seen really any change in elasticities, which for us was a positive in the quarter,” he said. The company is planning additional price hikes for its retail customers.įor now, consumers haven’t balked at the higher prices, noted CEO Jeff Harmening during a September earnings call. General Mills, which makes everything from Cheerios to Blue Buffalo pet food, expects that its costs will increase by 14% to 15% for its 2023 fiscal year, led by a rise in prices of ingredients such as nuts, fruits and flavors. The maker of Oreo and Ritz said that its energy, transportation, packaging and raw materials costs remain elevated, and it announced further price increases to offset those increases. “We do expect the near-term inflation to remain high,” Mondelez CEO Dirk Van de Put said on an earnings call this summer. “The cycle will break when supply is high and demand moderates,” said Davey. This imbalance means companies can pass along higher prices to shoppers without sales plunging. And many people are still working from home and consuming more of their meals there. And paying higher grocery prices may still be cheaper than dining out at restaurants, where menu prices are also rising (though at a slower clip). Consumers may be able to pull back on some discretionary items, but they have to eat.
The firm expects food inflation to rise between 5% and 10% next year. Producers aren’t “seeing any end to inflation in terms of their labor and commodities cost,” said KK Davey, the president of client engagement at market research company IRI. “That’s one of the reasons why prices take longer to come down.” It’s not clear when the war in Ukraine will end, or how weather will impact crops in the future. “There’s a lot of uncertainty,” said David Ortega, food economist and associate professor at Michigan State University. Extreme weather, like drought or flooding, and disease, like the deadly avian flu, have been hurting crops and killing egg-laying hens, squeezing supplies.Įven if some of these situations stabilize, it will take a while for those changes to reach consumers. Producers say they’re paying higher prices for labor and packaging materials. Contact us through the Help Center or ABD Ltd/Ent.A number of factors have contributed to the surge in prices. LEGOLAND FLORIDA RESORT IS PART OF THE MERLIN ENTERTAINMENTS GROUP (LONDON: MERL). LEGO, the LEGO logo, the Minifigure, DUPLO, the DUPLO logo, the FRIENDS logo, the MINIFIGURES logo, MINDSTORMS, NINJAGO, and the NINJAGO logo are trademarks and/or copyrights of the LEGO Group. Prices, times and schedules are subject to change without notice. LEGOLAND® Beach Retreat is a seasonal, lakefront resort with themed LEGO® bungalows located directly across the street from the theme park. LEGOLAND® Hotel and LEGOLAND® Pirate Island Hotel are both located just steps from the theme park entrance and feature fully-themed rooms along with daily entertainment offerings designed for kids by the creative minds behind all of the theme park and event content year-round.
LEGOLAND® Florida Resort is a multi-day vacation destination built for kids! Located in the heart of Central Florida, just 45 minutes from Orlando and Tampa, the resort includes an interactive, 150-acre theme park with more than 50 rides, shows and attractions inspired by popular LEGO® brands and characters, LEGOLAND® Water Park and a world-famous botanical garden.
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