Procter & Gamble (NYSE: PG) seemed to be sailing clear and free through the inflationary environment not too long ago. That's changed in a big way following an early warning by management that consumers were getting more cost-conscious. The question now is, how bad will it get?

Unless you completely ignore the media, you know that prices are on the rise. Inflation, as this phenomenon is called, is a problem throughout the economy. Even companies like international consumer staples giant Procter & Gamble have to deal with it. The process is pretty simple. Management cuts costs and pushes through price hikes, with the mix hopefully protecting margins.

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Source Fool.com