IHS Chemical Week

Economics :: Prices

The Price Push

12:29 PM MDT | June 4, 2008 | Robert Westervelt Robw@Chemweek.Com

Dow Chemical’s move last week to boost prices by as much as 20% on all 3,100 of its products garnered wide media coverage. Much of the focus was on what the potential impact will be on consumer prices and on whether the move is a harbinger of greater inflation in the broader economy. Those fears are likely overblown, however, given the small percentage that chemicals actually account for in finished product costs. A review of producer price index (PPI) data by Merrill Lynch (New York) economists found that chemicals have a 0.3% weight in crude PPI goods, a...

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