Kiplinger’s reports that inflation is on the horizon as commodities prices reach all time highs. Much of the commodity price run up is due to speculation as investors search for higher returns. A little inflation is not necessarily a bad thing for the economy as long as wages keep pace. It makes it easier for companies and individuals to pay down their debts, and can lead to higher savings rates as interest rates rise.
We are seeing service industry materials price increases over the next few months in the 5% to 7% range with some prices scheduled to rise as much as 12%. It may be a good time to incorporate your new material prices into your flat rate price books in the middle of February as the latest round of increases takes effect.