Retailers and restaurants raise prices as labor costs go up

08/21/2011 | San Francisco Chronicle

A second-quarter survey by Barlow Research Associates found that 53% of retailers and restaurants with annual sales of $10 million to $500 million raised prices in the past year, as unit-labor costs for nonfarm businesses increased 1.3%. Also, 61% said they plan to raise prices in the next year. "This is an early sign that even with high unemployment, labor costs are starting to pick up, giving companies an incentive to raise prices," an economist said.

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