After news Friday that inflation cooled to 2.4% in January, companies are signaling that relief may be short-lived for consumers.
While energy prices and used car prices are down year over year, grocery prices are up about 2% and restaurant prices have climbed 4%. Now, a new round of price increases is spreading across industries.
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Big brands raise prices
The Wall Street Journal reported companies, including Levi Strauss and McCormick & Company Inc., began raising prices on products ranging from jeans and spices to housewares and industrial goods.
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McCormick & Company says tariffs added $70 million in costs in 2025 and could add another $50 million this year, forcing price increases on its spices.
Many firms held prices steady through the fall and holiday season, in some cases offering deep discounts to attract shoppers. But that pause is ending as companies face higher input costs.
Economist Alan Detmeister told the Journal the price increases were stronger than usual in January, particularly for electronics, appliances and other durable goods.
The Adobe Digital Price Index found online prices recorded their largest monthly increase in 12 years in January, driven by higher costs for electronics, computers, furniture and bedding.
Apparel and tariffs
Columbia Sportswear said it kept prices flat on fall and winter merchandise, but plans high single-digit increases on spring apparel.
CEO Tim Boyle cited tariffs as a key factor.
“When combined with our other mitigation tactics, our goal in ’26 is to offset the dollar impact of high tariffs,” he said.
The company projects its net sales for the first quarter of 2026 to be between $747-$759 million, representing a decrease of 2.5% to 4% from last year.
Levi Strauss began raising prices last month, including a $10 increase on women’s straight ankle jeans that brought the price to $108 and a $5 increase on men’s original fit jeans, bringing the price to $84.50. The company said lower-priced items are seeing smaller adjustments.
Construction and small businesses
The construction sector is also feeling the strain. Structural Systems Repair Group in Cincinnati said it’s adding 10% to 15% increase to new contracts after steel prices jumped due to tariffs.
“It’s not sustainable for us to tolerate that kind of increase without some sort of concession from our customers,“ President Bryan Erickson said.
He added that health insurance costs for the company’s 115 employees have added pressure, leaving little room to absorb expenses.
A Vistage Worldwide survey cited by the Journal found more than half of 600 small-business leaders plan to raise prices in the coming months. Most expect increases between 4% to 10%, while about 10% anticipate hikes exceeding 10%.
Editor’s note: A previous version of this story included a fact card that has since been updated with new information. The previous fact card reported that McCormick & Co. would incur $70 million in incremental costs this year, but they have since revised that estimate to $50 million.
