Dow Chemical Company (NYSE: DOW) has raised its prices once again in an effort to counteract rising commodity prices. The move represents the second price hike this month alone while the company also noted that it would trim its capacity for several products and add on new freight surcharges to certain orders.

The move also underscores the problem the Federal Reserve faces as it modifies its interest rate policy to address the rising threat of inflation amid weak economic growth. The Fed has already aggressively cut rates from last September through April, but the result has been a dramatic decline in the value of the dollar.

Dow Chemical also noted that things weren't going to improve anytime soon. The company said it will raise prices as much as 25% starting on July 1st, which would come on top of the up to 20% increase that took effect June 1st and led several others to make similar price adjustments of their own.

The company made its first dramatic move back in December when it announced that it would cut 1,000 jobs and shut a number of underperforming plants in order to put the savings to work in higher-growth opportunities. It also unveiled a joint venture with Kuwait Petroleum, which allowed it to sell a big piece of its less profitable assets by selling a 50% stake for $9.5B.

It appears that for the next few months, consumer prices will continue to rise unless the Fed takes action.

Related Companies
Albemarle Corporation (ALB)
Westlake Chemical Corporation (WLK)
Rohm and Haas Company (ROH)
Eastman Chemical Company (EMN)
Ashland Inc. (ASH)
Hercules Incorporated (HPC)