THE WHAT? Nestle is expecting the cost of raw materials and labor to soar over the next 12 months, and expects to pass on any input cost inflation to consumers via price hikes, according to a report published by Fox Business.

THE DETAILS Speaking at a Barclays consumer staples conference, CFO Francois Xavier Roger said, per Fox Business, “If we talk of 2022, it is likely that input cost inflation will be higher next year than this year. Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it.”

Roger declined to comment on the company’s plans regarding its stake in L’Oreal.

THE WHY? With the labor market competitive and supply chains under strain, costs are rising and consumer price inflation is the almost-inevitable result of that. The global input prices index rose to its highest since 2008 in March, resulting in the steepest increase in average selling prices for goods and services for more than a decade.