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CPI Report Live Updates: Inflation Expected to Cool

Inflation is down from its peak last year, but some companies are still announcing hefty price increases for goods and services.

On Wednesday, the Walt Disney Company announced several price increases for theme park visitors, including a big pop in some ticket prices at Disneyland in California. The cost to enter that park rose more than 8 percent, to $194, on the most popular days. Other costs went up as well, including a service that gives guests access to shorter lines. That rose to $30 per person, up $5.

Disney previously said that it would raise the price of an ad-free subscription to its Disney+ streaming service this month. Other streaming platforms have made similar price increases in recent months, including Peacock and Paramount+.

Companies that sell food have also signaled that they will continue to raise prices, even as consumers start to pull back on spending. PepsiCo has already raised prices by double-digit percentages for seven consecutive quarters. Hugh Johnston, the company’s finance chief, said on Tuesday that prices would continue to rise next year “roughly in line with inflation,” which he expected to run higher than the typical prepandemic rates of 2 to 3 percent.

Higher prices helped PepsiCo generate a 7 percent rise in revenue and 14 percent jump in profit last quarter. The company also upgraded its annual profit forecast for the third time this year, even as shoppers have pulled back on purchases of Pepsi products, with sales volumes falling for four quarters in a row.

“We see the consumer right now being more selective,” Mr. Johnston told investors on an earnings call.

Chipotle also plans to make a “modest price increase to offset inflation,” Laurie Schalow, the company’s chief corporate affairs officer, said in a statement on Wednesday. The company declined to provide further details on how much menu prices will rise.

Other companies have said consumer demand remains robust, which could give firms more leeway to raise prices. Josh Weinstein, the chief executive of the Carnival cruise line, said consumers had continued to show a strong willingness to spend on experiences even though pricing was “well in excess of 2019 levels.” Booking volumes hit record levels in the third quarter, he said.

“We appreciate there are heightened concerns around the state of the consumer as of late,” Mr. Weinstein said on an earnings call last month. “But the fact is we just haven’t seen it in our bookings.”

Carnival executives said they expected higher fuel costs would continue to weigh on the company’s earnings, yet David Bernstein, the company’s chief financial officer, said it was “well positioned to drive 2024 pricing higher.”

Sumber: www.nytimes.com