Despite the government and its apologists insistence that inflation is “transitory”, reports from companies on the ground suggest otherwise.
As you can see in the graphic above, 3M (MMM) forecasted on July 27 that raw materials and logistics inflation would be a 65 cent to 80 cent headwind for full year 2021. That was up from 30 cents to 50 cents on April 27. This morning they said that they expect the headwind to come in at the high end of the 65 cent to 80 cent range.
On July 19, PPG forecasted that raw material costs would increase at a high teens to 20% year over year rate in the third quarter. Last Tuesday, they released a press release saying that raw material inflation in the quarter is trending $60 million to $70 million higher than previously communicated.
Last Wednesday, Sherwin Williams (SHW) announced that they would be raising prices an additional 4% starting September 20 to counter the same inflationary pressures.
The government can say inflation is “transitory” all it wants. The facts on the ground suggest that inflation continues to increase.