Consumers seem undaunted by higher prices of everything from luxury cars to beer, letting companies like Anheuser-Busch InBev NV and BMW AG boost profits despite economic threats ranging from inflation to war to China’s Covid flare-up.
AB InBev, the world’s largest brewer, on Thursday reported profit growth that was almost twice as much as analysts expected. BMW AG’s first-quarter earnings rose 12% on strong demand for luxury cars. Revenue at Stellantis NV, formed by the merger of Fiat Chrysler and Peugeot, jumped on the back of strong demand for new high-end models like the Jeep Grand Cherokee.
With costs of many raw materials flaring amid bottlenecks, companies have been testing how much they can raise prices after years of subdued inflation. Russia’s invasion of Ukraine has exacerbated shortages, cutting off supplies of some auto parts and cooking oils, while China’s continuing Covid-zero policy has crimped demand and added to supply-chain woes.
