Profit squeeze means prices to rise

CINCINNATI (AP) — Shoppers can expect some higher prices as the makers of toothpaste, soap and other everyday household products see their profit margins pinched by rising ingredient costs.

Both Procter & Gamble Co. and rival Colgate-Palmolive Co. reported lower profits Thursday and posted revenue below Wall Street expectations for the last quarter, and their stocks slid. They both said commodity costs are rising more than expected. P&G said they are adding $1 billion in costs for the year, double what it anticipated.

P&G, which counts Pampers diapers, Gillette shavers and Crest toothpaste among its major brands, said fast-rising costs for product-making materials and fuel likely will mean some price increases, with hikes already planned for its Duracell batteries in March.

Colgate-Palmolive President and CEO Ian Cook said during a conference call that the price increases would run 1 to 2 percent and be “appropriate.”

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