Brands Hike Prices as Inflation Cools

Major companies plan price increases despite lower-than-expected inflation in January

Published on Feb. 19, 2026

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Even as January's inflation came in below expectations, major brands are set to raise prices after previously absorbing tariff-related costs. Companies like Levi Strauss, Chipotle, Columbia Sportswear, and Nike are planning price hikes in 2026 to offset higher operating costs and tariffs, despite a slowdown in overall inflation.

Why it matters

This trend highlights the ongoing 'affordability crisis' facing American households, as price increases from major brands come at a time when consumer confidence has dropped sharply. The move by brands to pass on costs to consumers could put further pressure on household budgets, even as inflation appears to be cooling.

The details

Companies have been absorbing tariff-related costs and holding the line on price increases, but their patience is wearing thin. Levi Strauss, Chipotle, Columbia Sportswear, and Nike are among the brands planning price hikes ranging from high-single-digit percentages to $5-$10 per item. They cite higher operating costs, including tariffs, as the reason for the increases.

  • In January, the online prices for electronics, computers, appliances, furniture and bedding posted their largest monthly price increase in 12 years.
  • In fiscal 2025, Columbia Sportswear's net sales increased 1% to $3.4 billion, while its operating income dropped by nearly 25% to $207 million.

The players

Levi Strauss

An American clothing company that has announced another round of price hikes, ranging from $5 to $10 on selective items.

Chipotle

A fast-casual restaurant chain that has already taken menu prices up a notch and plans to continue raising prices as cost pressures rise.

Columbia Sportswear

An outdoor apparel and footwear company that is set to raise prices for its spring and fall merchandise by high-single-digit percentages.

Nike

A multinational corporation that designs, develops, and markets footwear, apparel, equipment, and accessories, and is looking at tariffs to add $1.5 billion in added costs during fiscal year 2026.

Newell Brands

The parent company of household names like Sharpie, Yankee Candle, and Rubbermaid, which raised prices several times last year as it faced higher costs for goods imported from China.

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What’s next

Morningstar's Caldwell predicts the Personal Consumption Expenditures (PCE) inflation rate will reach 2.7% in 2026, following an average of 2.6% in 2025. This suggests that price increases from major brands are likely to continue in the coming year.

The takeaway

The move by major brands to hike prices despite cooling inflation highlights the ongoing 'affordability crisis' facing American households. As companies pass on higher costs to consumers, it could put further pressure on household budgets, underscoring the need for policymakers to address the complex factors driving inflation and price increases.