How 5 companies are using pricing power to protect profits during high inflation

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Pricing power is a company's ability to raise prices on products and services without impacting demand. That's not an easy task.

For companies, elevated inflation means higher input costs — higher costs on the goods and services required to run their businesses. In turn, they want to raise prices and put that burden on their consumers and clients. However, such moves have to be done delicately because consumers and clients are also feeling the pinch of inflation and don't want to pay more. The rate of inflation has, indeed, cooled over the past year in the U.S.

Tide laundry detergent, made by Procter & Gamble is displayed on a grocery store shelf on July 28, 2023 in Greenbrae, California.A select group of our Club holdings have recently demonstrated durable pricing power to protect profits during what continues to be a high inflation environment.

 

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