Many local companies have a problem.

The cost of the things that go into the things they make keeps going up.

Yet the money consumers have to spend does not.

It's a dilemma that's playing out for all kinds of companies, in all kinds of industries. And it's translating into all kinds of solutions, from belt-tightening at the country's biggest brewer to fewer new stores for local retail chains to a 25-cent price hike on cinnamon-crunch bagels.

For months now, prices of commodities ranging from wheat to rubber, from oil to ores, have been going up, and sometimes fast. Earlier this month, the government reported that its index of crude-materials prices has jumped 34.3 percent over the last year.

Prices for finished goods climbed, too, but at a slower pace, just 6.5 percent. That highlights a reality facing many companies: Those high costs are hard to pass along.

Grocery and gas bills are gobbling up a bigger share of many families' incomes, and paychecks haven't kept pace. So there's just not as much money for consumers to spend. It's a textbook example of what Brown Shoe Co. calls "a challenging retail environment."

That has meant disappointing earnings for the Clayton shoe seller, which has been forced to eat some of those higher costs.

As a result, it plans to open fewer stores this year, scaling back expansion plans by about 20 percent, and will try to turn over inventory faster, company executives have said. And with price hikes on the way from its suppliers, Brown will raise its own prices, perhaps by $10 a pair.

To make up for it, it'll add new features or better material to the shoes it's selling. A key question, Brown President Diane Sullivan told analysts recently, will be, "How do we make sure we add additional value?"

At Panera Bread Co., which is wrestling with a wheat bill that has grown 2 1/2 times during the last year, the focus is on getting the most value, and profit, out of the food it's selling.

The Clayton-based "fast casual" dining chain recently abandoned a labor-intensive pizza product and has raised prices, and marketing, for many of its sandwiches and breakfast items. In March, it bumped up prices on less-expensive fare, and in June will add a quarter to the price of its "signature" bagels — like Asiago cheese and cinnamon crunch — while the kinds you can get anywhere, whole wheat or sesame, will stay at 99 cents.

The goal is to get customers in the door, and then get them to buy higher-profit items, Chief Executive Ronald Shaich told analysts last month.

Panera is fortunate in one way: Given all the talk about food prices of late,

customers seem to realize that a good sandwich might cost a little more than it used to.

"They've seen it in the grocery stores, and they're giving folks like us permission," Shaich said. "They fully understand the necessity here."

That understanding only goes so far, though. The relentless climb in food costs has caused Ralcorp Holdings Corp. to raise prices on its store-brand product lines, and it has been selling more as cost-conscious shoppers shift away from pricier brand names. That drove sales up 12 percent in the second quarter. But the price of ingredients and packaging has climbed even faster, and many of the supermarkets that carry Ralcorp's products pushed back against sharper price hikes.

So there went $2 million out of the bottom line, the company said. And the predictions are that it will get worse. Ralcorp upped its budget for wholesale food costs by 17 percent for the second half of the year, to $70 million.

At Anheuser-Busch Cos., where grain and energy are driving up costs, becoming more efficient is "a high priority," Michael Owens, vice president for business operations, said in a statement. Last year, the company launched "Project Blue Ocean," a bid to wring out $400 million in expenses.

Despite that effort, and its customary price hedging on grains and other commodities, A-B has had to raise prices a bit to keep up.

The big brewer is starting to see increased sales of its lower-market brands like Busch and Natural, Chief Financial Officer Randolph Baker recently told

analysts. It's unclear if that's related to the economy, but it's a trend that bodes well for A-B, he noted, as those beers are more often bought in cans, which are less expensive to produce than glass bottles.

But there's no telling how long that will last, Baker said, so the company needs to keep a tight rein on expenses. "We have significant cost concerns," he said.

And with commodities prices showing no signs of returning to earth any time soon, A-B is not alone.

tlogan@post-dispatch.com | 314-340-8291

Jeremiah McWilliams contributed to this report.