SUMMARY: The stock market nor employment data captures what’s ailing most American families: rising costs for critical, necessary items. Meanwhile, despite wages eking up a little bit since the financial crisis, adjusted for inflation, Americans haven’t gotten a significant raise since 1999.
Any brand that is raising prices is helping consumers move to a competitor. With unemployment low marketers falsely believe that consumers are spending money, which is partly true, but consumers are hurting because of the rising costs of healthcare along with small raises.
The other issue that scares me is the rising credit card debt held be consumers. It’s a record levels now and sooner or later that bill is going to come due.
Private label products are eating branded product market share and for some brands to respond by raising prices is just plain stupid.