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From Dairy Queen to Brooks Running, Berkshire’s businesses seeing an impact for inflation

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Markets are focusing on inflation this year. Rising prices also have an impact on portfolio companies. Berkshire Hathaway in different ways.

Federal Reserve Bank’s March meeting preferred inflation gauge rose 5.2%The central bank began to raise interest rates in an attempt to keep the economy afloat.

CNBC interviewed executives from several companies within the Berkshire conglomerate ahead of their annual shareholder meeting.

Irv, Nebraska Furniture Mart’s CEO and Chairman, stated that although higher prices had begun to impact the core of his company, things were still in good condition overall. In the aftermath of the pandemic, home furnishings were a boom sector as Americans moved out and designed their own living areas.

We can feel inflation impacting our business slightly, although we do see some slowdowns in writing business. However, it is coming off so many large numbers due to the pandemic. … Blumkin stated that although it’s not at an all-time high, you can see signs of a slowdown.

Brooks Running’s CEO Jim Weber stated that while it was difficult to increase prices but that some price pressures could be eased soon.

We don’t have infinite pricing power but we have made selective price hikes where possible. The entire industry is very competitive. It is an important market. … Weber stated that he believes in supply chains where costs will mediate.

Troy Bader from Dairy Queen, the CEO of Dairy Queen, highlighted inflation as an issue for the restaurant business.

“It’s one of the most difficult challenges that franchisees face and I would argue it impacts us on three fronts. One, our franchisees,” said he. Our vendors and distributors are the other.

Bader stated that around 20% of Dairy Queen franchises still have closed dining areas due to staffing problems.

Today, it’s more about income than wages. The people are willing to pay whatever it takes. Bader explained that not enough people are available to work in this industry.

See all coverage from the CNBC Berkshire Hathaway annual meetings here.

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