P&G plans to hike prices despite a drop in sales volumes

STORY: Shares of Procter & Gamble fell on Thursday after the consumer products giant warned that high commodity costs were pressuring profits and said it plans to continue raising prices amid high inflation.

The maker of Tide detergent said in its earnings release on Thursday that it raised prices by 10% in the last quarter compared to a year earlier.

Procter & Gamble, like many other companies, has hiked prices multiple times to cover soaring transportation, commodity and labor costs.

The higher prices have been met with less pushback compared to discretionary items, but customers have still bought fewer of its products.

Sales volumes fell 6% in the quarter, led by declines in brands like Gillette and Braun, as well as Tide and Mr. Clean.

Procter & Gamble is the first major consumer staples company to announce December-quarter earnings, and some analysts said its results may not "bode so well" for its peers.

Still, P&G raised its full-year sales forecast and maintained its annual earnings outlook.