P&G Plans Price Hikes as Shoppers Grow ‘More Careful’

Consumer packaged goods giant Procter & Gamble (P&G) is raising prices amid growing consumer caution.

The company released earnings Tuesday (July 29) showing a 2% increase in net sales, while also introducing guidance for its next fiscal year included a $1 billion hit based on projections of higher costs from tariffs.

Speaking on an earnings call, Chief Financial Officer Andre Schulten said the price hikes would be in the “mid-single digits” on about 25% of products in the U.S.

Management said it was projecting a slight downturn in consumption among both higher-income and lower-income consumers in response to economic conditions.

“The volatility the consumer is seeing, I think, is maybe not necessarily grounded in their current reality, but more on what to expect for the future,” Schulten said.

“So consumers are a bit more careful in terms of consumption. They are using up pantry inventory. And they are looking for value either in smaller packs and promotions or in larger pack sizes in the club channel and online.”

Jon Moeller, the company’s outgoing CEO, pointed to a “level of baseline uncertainty” influencing the Pampers-maker’s guidance for the coming year.

“To the extent that people are frustrated with the lack of certainty, and the breadth of the range, trust me, there’s no one more frustrated with that than I,” Moeller said.

Moeller is set to become Procter & Gamble’s executive chairman at the start of 2026. Succeeding him as CEO will be Shailesh Jejurikar, the company’s current chief operating officer, P&G said in a news release earlier this week.

The company’s planned price increases come as consumers continue to feel the impact of tariffs, as recent PYMNTS Intelligence research shows.

Last month’s report, “Stock Out. The Impact of Tariffs on Consumer Product Prices and Availability,” found nearly half of all shoppers — 47% to be exact — reported being unable to find key items in recent weeks.

“While these shortages stem in part from lingering global disruptions, tariffs are emerging as a clear price driver, and one that is disproportionately affecting younger and financially vulnerable consumers,” PYMNTS wrote Tuesday.

“After all, among the categories most affected include groceries, personal care products, and clothing; all segments where many U.S. households depend on low-cost imported goods. The downstream impact of the tariff-induced price hikes and supply constraints is that they are tending to hit the hardest where wallets are thinnest: younger and financially vulnerable consumers.”