Here's what Costco is saying about inflation — and a membership fee increase

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Here's what Costco is saying about inflation — and a membership fee increase
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The comments made by CFO Richard Galanti on its conference call suggest the Fed will still be in inflation-fighting mode for the rest of the year

As the market obsesses about inflation and what would cause the Fed to step off the gas pedal, it’s worth considering what some companies are saying about it.

“We’ve... As the market obsesses about inflation and what would cause the Fed to step off the gas pedal, it’s worth considering what some companies are saying about it. “We’ve seen minor improvement in a few areas,” said Galanti, according to a transcript of the call from S&P Global Market Intelligence. “But all in, pressures from higher commodity prices, higher wages and higher transportation costs and supply chain disruptions — they’re still present, but we are seeing just a little light at the end of the tunnel.”

“We’re seeing commodities — some commodities prices coming down, such as gas, steel, beef, relative to a year ago, even some small cost changes in plastics. We’re seeing some relief on container pricing. Wages are still the higher thing when we talk to our suppliers. And as we all know, wages still seem to be the one thing that’s still relatively higher. But overall, some beginnings of some light at the end of that tunnel,” said Galanti.

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