Is That Fair or Unfair to Companies?

If you have a well run company that has its finger on the pulse of the global economy, then you would expect mark ups to come in advance of inflation. But there wasn't that expectation and it makes it difficult to explain why companies increase their prices. However, this is where the Fed model might play a role. They look at expectations. So if there is a one time increase in the cost of wheat, you don't expect bread to go up 10%. It's easier for companies to say "I'm not a bad guy. I increased the price of bread"