: Here’s what Costco is saying about inflation — and a membership fee increase

by | Sep 23, 2022 | Stock Market

As the market obsesses about inflation and what would cause the Fed to step off the gas pedal, it’s worth considering what some companies are saying about it. The view from Costco Wholesale, the warehouse retailer known for its competitive prices, seems as good as any to start. And the comments made by CFO Richard Galanti on its conference call suggest the Fed will still be in inflation-fighting mode for the rest of the year, though perhaps a pivot could come next year.

“We’ve seen minor improvement in a few areas,” said Galanti, according to a transcript of the call from S&P Global Market Intelligence. “But all in, pressures from higher commodity prices, higher wages and higher transportation costs and supply chain disruptions — they’re still present, but we are seeing just a little light at the end of the tunnel.” For the fiscal fourth quarter ending August 28, Costco absorbed inflation of about 8%, compared to 7%-plus in the previous quarter. “We’re seeing commodities — some commodities prices coming down, such as gas, steel, beef, relative to a year ago, even some small cost changes in plastics. We’re seeing some relief on container pricing. Wages are still the higher thing when we ta …

Article Attribution | Read More at Article Source

Share This