Economics
Amazon Boosts Wages, Pepsi Raises Prices and Consumers Are Caught in Between
- U.S. companies are coping with tight labor market, tariffs
- ‘You feel better off but you’re probably not,’ analyst says
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Amazon.com Inc.’s promise of higher pay is welcome news for workers. PepsiCo Inc.’s plan to raise prices on what they eat and drink? Not so much.
The announcements Tuesday by the online retailing behemoth and the food company show the different impacts of inflation on middle class Americans: Wages are picking up in a tight job market, while firms face higher transportation and materials prices due in part to tariffs on products from China and Canada. And passing those costs to consumers erodes pay gains.