Well, given the $99 price was back in the early 90’s, and virtually everything has increased in price since then, including wages, it safe to say that inflation is the culprit.
maybe for that particular product, but not other things:
Corporate profits accounted for more than half of recent price increases. To stamp out inflation once and for all, we need to crack down on price gouging.
inequality.org
Let’s demonstrate with one glaring example: diapers.
The hyper-consolidated diaper industry is dominated by just two companies, Procter & Gamble and Kimberly-Clark, which own well-known diaper brands like Pampers, Huggies, and Luvs. The cost of wood pulp, a key ingredient for making diapers absorbent, did spike during the pandemic, increasing by more than 50 percent between 2020 and 2021.
But last year it
declined by 25 percent. Did that drop in costs lead Procter & Gamble and Kimberly-Clark to lower their prices? Far from it. Diaper prices have increased to nearly $22 on average.
These corporate giants have no plans to bring prices down anytime soon. In fact, their own executives are openly bragging about how they’re going to “expand margins” on earnings calls. Procter & Gamble predicted $800 million in windfall profits as input costs decline. Kimberly-Clark’s CEO
said the company has “a lot of opportunity” to expand margins over time.
It’s not just diapers — while many corporations were quick to pass along rising costs, they’ve been in no hurry to pass along their savings. A recent survey from the Richmond Fed and Duke University revealed that 60 percent of companies plan to hike prices this year by more than they did before the pandemic, even though their costs have moderated.
inflation