PepsiCo raised prices on its snacks and drinks by 17% on average from last year. Makers of consumer goods are watching to see whether they can do the same without people slamming the brakes on purchases.
Food and beverage companies have been under pressure to raise prices to pass off higher costs for everything from raw materials to labor. In the U.S., food inflation is at the highest level in 40 years, with grocery prices up 13.5% in August compared with a year earlier, according to the latest data from the Labor Department.
