Walmart CFO says that if fuel costs remain high, inflation could intensify

Glonghui, May 21 — Higher fuel prices are imposing massive costs on Walmart, and the company's Chief Financial Officer stated that if these costs remain high, the rate of retail price increases may rise for the remainder of this year. John David Rainey said, “These have had a substantial impact on the cost of goods sold for us and our suppliers.” In the first fiscal quarter, due to fuel costs being higher than expected, the company absorbed $175 million in costs, accounting for about 250 basis points of operating profit growth. Rainey noted that inflation could have a particularly significant impact on food categories, which are heavily dependent on fertilizer supplies, and fertilizer supply is being hit by the closure of the Strait of Hormuz.