After years of battling through the COVID-19 crisis, tackling supply chain issues and doubling down on sustainability, brands have been hit squarely between the eyes by soaring inflation and rising costs such as energy and raw materials.

In these unpredictable times, as the cost of living skyrockets, brands have crucial choices to make about how they set prices, says Will Humphrey, strategy director at Wunderman Thompson.

In essence, are your customers buying your goods or services to please themselves or to please others? Is your purchase a status symbol, or is it more of a functional utility?

When pricing in...