Businesses split on whether to raise prices as energy costs surge

Federal Reserve weighs rate rise amid price-shock uncertainty

The Wall Street Journal described the pricing question as a thorny one with important implications for the U.S. economy. The newspaper said it spoke to farmers, manufacturers and economists to see how companies are navigating the pricing question and what consumers can expect at checkout.

Some businesses are holding their ground, treating the energy pressure as a temporary nuisance and betting that price shocks will recede, the Journal reported.

Others see energy and trade volatility as here to stay, leaving zero wiggle room to absorb the hit, according to the Journal.

The pricing decisions are unfolding as the Federal Reserve weighs an interest-rate rise, the newspaper reported. Higher energy costs have filtered through to consumers at the gas pump. The Brown University Climate Solutions Lab estimated that U.S. consumers spent additional sums on gasoline and diesel during the Iran conflict and disruptions from the Russia-Ukraine conflict, the Journal said. Higher pump prices have led many families to save less and curb spending elsewhere, according to the newspaper.

The report appeared as the lead item in the Journal’s 10-Point newsletter. The newsletter was curated and edited by Morgan Smith and Will Horner in collaboration with Editor in Chief Emma Tucker.