Best of Bloomberg Intelligence (05/10/2022)

The video discusses the ongoing rise in commodity costs and its impact on consumer staples. Analysts from Bloomberg Intelligence highlight that input costs have not yet peaked, leading to inflationary pressures on margins. Companies have been passing these costs onto consumers, but concerns about price elasticity and consumer trade-down behavior are growing. The analysis reveals that while overall price sensitivity is low, it varies across product categories, influenced by substitute quality and brand equity.

What has been the trend in price elasticity for producers over the past 6 to 8 months?

What factors influence consumer behavior regarding price sensitivity in different product categories?