Praveen Paramasivam and Uday Sampath Kumar

(Reuters) – Executives from U.S. businesses including Monster Beverage American Airlines (NASDAQ 🙂 has stressed the rising costs of labor and raw materials over the past few days. This is pointing out that profit margins are being severely strained, and more price rises.

Inflation saw its highest annual increase for nearly 40 years last year, due to supply-chain problems caused by the COVID-19 pandemic.

Problems have also been exacerbated by Omicron Coronavirus variant rapid spread and staff shortages across industries.

Hilton Schlosberg (NASDAQ:) said that inflationary pressures are all around. He was speaking to investors during a conference call.

Schlosberg was shocked at the nearly 60% increase in aluminum prices over the past year, which forced Monster to raise its prices. In the near future, Monster will consider a new round of price rises.

Conagra Brands, the Slim Jim maker (NYSE:), stated earlier this month that it will have to increase product prices to compensate for a larger-than-expected rise in costs.

Only 13% of businesses have reported quarterly results thus far. More corporate warnings about the effects of cost inflation can be expected.

Nik Modi from RBC Capital Markets, an analyst at RBC Capital Markets wrote in a note to clients that “Inflation” and “supply-chain disruptions” will be problems in 2022. As capacity expansions continue, some inputs will begin to fall from their peak. However, this won’t be the end of meaningful relief.

Some U.S. airlines have seen rising fuel costs and increased wages. American Airlines Group United Airline Holdings and United Airline Holdings warn about pressures on profit margins over the next few months.

American anticipates that its fuel adjusted per-available seat mile for the full year will rise by about 5% in comparison to 2019.

To offset rising raw material and freight prices, companies, which range from apparel and consumer goods providers to automakers have raised their prices.

Procter & Gamble (NYSE:) has raised prices across its portfolio of detergents and cleaning products, and earlier this week said it was expecting higher prices to contribute to a major portion of its sales growth in the second half of the year.