Dow Chemical Raises Prices Again

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Less than a month after announcing across the board price increases to combat rising energy and raw materials costs (May 28 Press Release), Dow Chemical (DOW) is at it again announcing additional across the board price increases of as much as 25 percent.  They are also implementing a freight surcharge of $300 per shipment by truck and $600 per shipment by rail (Jun 24 Press Release).

We can talk all we want about the core CPI and the PPI but this is real world, on the ground, inflation.  Costs are going up for Dow, which is a large chemicals company that provides inputs to all kinds of manufacturers, and they will now be trying to pass those increased costs onto their customers who will in turn have to reckon with the prices they are charging.

I don’t think it is any accident that Dow made this announcement the day before tomorrow’s FOMC decision.  Perhaps they are trying to send the Fed a message.

Dislcosure: Top Gun has no position in Dow Chemical (DOW).

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