Judging by the latest comments on inflation from the nation's biggest consumer products companies, Fed chair Jerome Powell might have to raise interest rates seven times this year instead of the three times widely expected by investors.
"Like the broader industry, we're seeing sharp increases in input costs, including inflation in freight and commodities. Because of our improved volume performance, we're also incurring higher operational costs," General Mills (GIS) CEO Jeff Harmening said Wednesday. "We are moving urgently to address this increasingly dynamic cost inflation environment."
General Mills subsequently slashed its full year profit outlook owing to percolating inflation. It now sees core operating profits falling 5% to 6% vs. a previous estimate of down 1% to unchanged.
Shares plunged as much as 9.5% on the session.
By no means is General Mills alone on feeling the profit-busting force known as inflation.
Two of the main culprits for the inflation, Tyson Foods (TSN) CEO Tom Hayes says, are rising wages for workers and a driver shortage in the trucking industry.