Procter & Gamble To Increase Prices By 16%

Cincinnati, OH (AHN) - Procter & Gamble Co. said Monday that it will increase prices by as much as 16 percent but expressed confidence that consumers will continue to patronize its products despite the price hikes.

According to Bloomberg, P&G, which carries Tide, Head & Shoulders, Gillette and other bestselling brands, attributed the price increase- the highest in 18 months- to higher costs of plastic, energy and paper.

P&G officials are still hopeful that loyal customers will continue to buy their products over store brands with lower prices such products promoted by Kroger Co. and Wal-Mart Stores Inc.

Last May, P&G earnings increased by 7.9 percent, while third quarter net income was at $2.71 billion, $20 million up over the same period last year.