Canadian mattress manufacturer Sleep Boutique company owner Colin Crump said, he produced mattresses required raw materials suppliers have fifty, except for one or two is the exception, the rest are significantly increased supply prices; from the wood frame, springs, plastic foam to fabric, no price increases; price increase of less than 5%, more than 60%.
In order not to lose money, Colin Crump had to raise the price of mattresses by 10%, and may continue to raise prices in the future, because the average increase in the price of incoming materials has exceeded 10%; Colin Crump believes that by the end of the year their company’s products will reach 20-25% price increase.
Economic analysts believe that the reasons for raw material price increases are complex and varied. For example, the COVID-19 virus pneumonia epidemic forced many manufacturers to suspend production, resume production in order to prevent the epidemic had to reduce the staff on duty, the epidemic under the surge in online shopping brought about by capacity constraints, not long ago the Suez Canal occurred in the giant container freighter grounded for a long time blocking the canal traffic, and so on.
But what worries economic experts most is not the above-mentioned temporary factors, but the dormant thirty years of inflation may really want to come back. Because the past years the Federal Reserve took the lead in taking ultra-low interest rates plus quantitative easing stimulus measures, whether the economy has been revitalized first, the financial markets are flooded with a flood of money. This is a breeding ground for the resurgence of inflation.
There are already signs that the prices of everyday consumer goods have started to rise, such as Coca-Cola drinks, diapers for children and the elderly, feminine hygiene products, and so on.
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