(CNN) – Add color to the growing list of things that are getting more expensive.
Sherwin-Williams announced Tuesday that “demand for its paints and other products remains strong,” forcing the retailer to hike prices by 7% from August. The company blamed rising raw material costs for the price increases – a pandemic trend as consumers changed their buying habits and supply chains around the world became jumbled.
Demand for home paintwork – both fixers and new builds – remained strong, and the industrial side of the business recovered faster than expected.
CEO John Morikis said in a statement Tuesday that sales in the second quarter were stronger than expected. This led the company to raise its sales and profit forecast for 2021. Full Sherwin-Williams second quarter results will be released on July 27th.
The stock, which was slightly lower in pre-trading hours, is up nearly 50% since last year.
Home sales hit a 14-year high in 2020, with the average annual price of an existing home climbing to $ 296,500 – the highest price in history, according to a recent report. While paint could only add a small fraction of it, home prices don’t get cheaper when added to other raw material costs.
Rising wood prices alone have driven the price of the average new single-family home by $ 35,872, according to an analysis by the National Association of Home Builders.
The rising cost of paint is just the latest product forcing consumers to dig deeper into their wallets. A key measure of inflation rose to a 29-year high in April after adjusting for more volatile food and energy prices. The Bureau of Economic Analysis price index, which tracks US consumer spending, rose 3.6% in April, the largest increase since September 2008 – the height of the financial crisis.