"The globalisation side has a lot to do with China. Its export machine gives us all cheap stuff and suppresses wages for manufacturing industries worldwide.[Moi ici: Enquanto os tótós culpavam o euro. Nós, desde sempre optamos por "It's not the euro, stupid!"]Is the China-as-deflation-exporter story over?...As the chart makes clear, the exchange rate has a lot to do with whether China exports higher prices to the US. Beijing has allowed the renminbi to strengthen somewhat....Now the pressure is really on, as reflected in the 9 per cent increase in Chinese producer prices in May. Choyleva argues that passing higher costs on to domestic customers is difficult in China, as evidenced by weak consumer price inflation. Nor is the government likely to provide relief by weakening the renminbi. It is more concerned about things like food price inflation and encouraging capital inflows. So Chinese producers, if they want to protect profits, have little choice but to jack up their export prices in dollars."
"There are compelling reasons for businesses to raise prices this summer. First and foremost, costs are up. Wages in April and May grew at an annualized rate of 7.4%, gas prices have jumped by 49.6% in the last year, and May’s inflation rate leaped to 5%....consider the following strategies to implement:Be mindful of competitors. If they are raising prices, it’s easier for you to do so too. Don’t forget to evaluate how your customers will react...Provide an explanation. To defuse pushback, provide a data-backed narrative on why prices are increasing. Customers are more amenable when they understand why they are being asked to pay more....Lower other costs. It’s unrealistic for managers to believe that they have carte blanche to pass along any cost increase and that customers will in essence respond “No problem, keep your normal profit and we’ll continue buying the same amount.” Counterbalance increased input costs with savings from elsewhere....Roll out a “Best” version. The combination of pent-up demand and stimulus money may increase the receptivity of customers to buying a high-end “Best” version of a product....Provide options to retain price sensitive customers. A price hike may not work for some customers. Instead of writing them off, offer choices to keep them in the family....Reexamine prices individually. I’ve found it inevitable that examining a company’s prices leads to discovering some that are too low. Properly pricing these products may reduce the pressure to make an across-the-board increase or take unnecessary risks on other products."