U.S. companies fight back against inflation narrative
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Illustration: Sarah Grillo/Axios
Inflation, while gradually easing its peak, is still infuriating American consumers — and corporate reputations are taking a hit because of it.
Why it matters: In preparation for potential political backlash, companies are attempting to manage their messages — and in some cases, set the record straight — when it comes to rising prices.
The big picture: Americans on both sides of the aisle are concerned about high prices, making it a popular talking point on the presidential campaign trail.
- President Biden's campaign is trying to convince voters that inflation would be worse under former President Trump, while the Trump camp regularly points to "Joe Biden's inflation nightmare."
🥊 Reality check: Inflation has slowed for second straight month, according to the Consumer Price Index.
Yes, but: No company wants to become a political football and get called out from a debate stage or rally podium for its price hikes.
State of play: Communications teams are proactively sharing context about price increases or correcting any inaccuracies online or across social media.
- For example, McDonald's U.S. president Joe Erlinger recently issued an open letter pushing back against the notion that prices were increasing "beyond inflationary rates."
- Erlinger also used the opportunity to point to the macroeconomic forces at play, like "historic rises in supply chain costs, wages and other inflationary pressures."
The intrigue: According to this year's Axios/Harris Poll 100, companies like Walmart, Burger King, Costco, Kraft Heinz and Kroger saw a decline in their reputation scores due in part to inflation.
What to watch: The flurry of price increases for goods and services — from Girl Scout cookies to stamps to streaming subscriptions — could continue to influence consumer sentiment.
- Inflation frustrations could signal danger for companies. Conservative voters could tie them to the bad vibes associated with "Bidenomics," while liberals could attack them for presumed corporate greed.
The bottom line: Inflation concerns are chipping away at brand reputation.
Go deeper: "Inflation" doesn't mean what it used to
