Simply put, the American consumer has been getting squeezed to line the pockets of corporate America and its investors.
However, we're now seeing more evidence that businesses will attempt to bolster their profits by raising prices on their customers. Chipotle and Netflix recently announced that they would soon be raising the prices of their goods and services...
Chipotle Mexican Grill's CFO announced it would raise prices by mid-single digits (~5%) by the end of the quarter. This comes as the burrito chain faces rising food costs. "A 5% increase would raise the cost of Chipotle's chicken burrito from $7.81 to about $8.20 in New York," reported BI's Hayley Peterson.
Netflix is raising the prices of new subscriptions by $1 to $2 per month. That would represent a 12% to 25% increase over a $7.99 subscription. "The company justified the price increase by saying it has greatly expanded its streaming video library," reported BI's Steve Kovach. "It'll use the new revenue to acquire even more content."
Tuesday, April 22, 2014
The "There Is No Inflation" Report [Chipotle and Netflix Edition]
Sam Ro at Business Insider provides the news: