Yes, companies can stay profitable without raising prices — here’s how

Jerry Haar is a business professor at Florida International University and a fellow at both the Baratta Center for Global Business Education at Georgetown University and New York University’s Development Research Institute. He is also a member of the International Executive Resources Group.

Sir Isaac Newton’s “Universal Law of Gravitation” states that whatever goes up must come down. Obviously, Sir Isaac has not been to the grocery store lately.

Prices are climbing well above the official inflation rate — and not always for the reasons companies claim. The real question isn’t why prices are rising. It’s whether they have to at all.

Prices Are Rising Fast — and Not Just Because of Inflation

While the official inflation rate sat at approximately 2.4% to 2.7% in early 2026, businesses across sectors have implemented price hikes in the high single digits or even double digits. The Adobe Digital Price Index recorded its largest monthly online price increase in a dozen years in January, driven by electronics, appliances, and furniture.

Specific examples tell the story:

Video streaming subscriptions jumped 30% year-over-year

Dell and HP confirmed PC price increases of 15%–20%, citing memory chip shortages

Beef prices rose by double digits; instant coffee surged 24%

Dining out climbed 4.6%, with health care, insurance, and electricity also spiking

More than half of small business leaders surveyed by Vistage Worldwide in December said they planned........

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