The Price Break Is Over: Companies Raise Prices Again

Intermediate | February 22, 2026

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A New Year “Reset”: Companies Raising Prices Again

If you felt a little relief during holiday shopping season, you’re not imagining it. Many businesses held back on price increases in late 2025 and leaned on discounts to win holiday customers. But in early 2026, that break is ending—and prices are moving up again. In plain terms, companies raising prices again is becoming the new normal. (WSJ)

What’s Driving the New Price Hikes?

A big reason is tariffs (extra taxes on imported goods) that raise costs for companies. At the same time, many businesses say they’re dealing with higher wages, rising health insurance expenses, and other costs they can’t easily absorb. (PYMNTS) In other words: their bills went up, so they’re passing some of that cost on to customers.

The Data Behind the “Real World” Price Pain

One researcher, Harvard Business School professor Alberto Cavallo, tracks online prices at major U.S. retailers every day. His data shows that the prices of the most affordable imported goods rose 2.3% after dipping at the end of November (data through Feb. 10, 2026). (PYMNTS) That’s a noticeable jump in a short time.

Another warning sign comes from the Adobe Digital Price Index, which found that online prices had their largest monthly increase in 12 years, led by higher prices for electronics, computers, appliances, furniture, and bedding. (PYMNTS)

Why Businesses Are Nervous (Even While Raising Prices)

Here’s the tricky part: companies know customers are tired of higher prices. At the same time, many executives feel they don’t have much choice—because costs keep rising.

And the pressure isn’t only financial; it’s also political and reputational. As price increases continue into 2026, some analysts say corporate America may become an easy target for public anger about affordability, especially as the debate heats up before the U.S. midterm elections. (Axios)

What This Means for Everyday People

For households, especially low- and middle-income families, price increases can feel like death by a thousand cuts—small hikes across many categories. Some companies are trying to protect their brand by pushing “value” deals, but the overall message is simple: the price environment is getting tighter again.

So when you see a “new year price update,” don’t just think, “This company is greedy.” Sometimes it’s more like a chain reaction: tariffs and rising costs hit businesses first, and customers feel the impact later. That’s why companies raising prices again is a story worth watching—because it usually shows up in your daily budget next.

Vocabulary

price hike (noun) – an increase in the price of something.
Example: “The store announced a price hike on electronics this month.”
tariff (noun) – a tax on imported goods.
Example: “A new tariff made imported products more expensive.”
absorb costs (verb phrase) – to pay extra costs without raising prices.
Example: “The company couldn’t absorb costs, so it raised prices.”
pass on (phrasal verb) – to transfer costs to someone else (usually customers).
Example: “Businesses often pass on higher costs to consumers.”
affordability (noun) – how easy it is to pay for something.
Example: “Affordability is a major concern for many families.”
durable goods (noun) – items that last a long time, like appliances and electronics.
Example: “Durable goods like refrigerators can be expensive to replace.”
index (noun) – a measurement that tracks changes over time.
Example: “An index showed online prices rising quickly.”
dip (verb/noun) – to go down slightly.
Example: “Prices dipped in November before rising again.”
reset (noun/verb) – a return to a new normal after a pause.
Example: “After the holidays, many companies did a price reset.”
backlash (noun) – strong negative reaction from the public.
Example: “Some brands fear backlash after raising prices.”

Discussion Questions (About the Article)

Why did many companies pause price increases during the holiday season?
What are the main reasons businesses say they are raising prices again?
Which product categories are seeing the biggest online price increases?
Why might companies worry about public anger even if they “need” to raise prices?
What does the article suggest about the timing of price increases (why now)?

Discussion Questions (About the Topic)

When prices rise, who should take responsibility—government policy, companies, or consumers? Why?
Do you think tariffs usually help or hurt everyday people? Explain.
What strategies can families use when prices rise across many categories?
Should companies be expected to absorb costs to protect customers? Why or why not?
How do price increases change the way people trust brands?

Related Idiom / Phrase

“Pass the cost on” – to make customers pay for a company’s higher expenses.

Example: “When wages and insurance premiums rise, some companies pass the cost on through higher prices.”

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This article was inspired by: WSJ, PYMNTS, and Axios