From CNBC.com
Dow Chemical Chief Executive Andrew Liveris said Friday the company seems to have hit a “raw nerve” with the price increase it announced earlier this week.
“I do think we’ve hit a raw nerve,” Liveris said in an interview on CNBC’s “Squawk Box.” “I do think, out there in the world that we all are living in, I think the consumer is screaming, and I think it’s the topic du jour, and every company is in a different part of the value chain.”
On Wednesday, Dow
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[DOW 40.4 
-0.23 (-0.57%%) 
]made a high-profile announcement that it would increase its prices by as much as 20 percent on June 1. Dow, the top U.S. chemical company, said the plan was necessary to offset the impact of rising costs for energy and related raw materials. Over the past year, Dow has already increased its price by about 12 percent, but those price changes have been phased in gradually rather than implemented all at once.
In the interview, Liveris said he thinks the U.S. is underestimating the level of inflation in the economy and he expects the rise in energy costs is beginning to destroy demand.