JAPAN’S TSUNAMI STICKER AFTER-SHOCK: Expect Higher Prices In The Showrooms: “Japan’s biggest automakers—Toyota and Honda—are most directly affected by damage done to the region’s plants and suppliers by the earthquake, tsunami and subsequent nuclear power plant disaster. For example, Toyota’s plants are running at about 30 percent capacity (the company hopes to be producing at full capacity by this fall). But sticker prices are going up industry-wide, Hall says. Simple supply-and-demand equations suggest that these makers’ most appealing cars will cost more as dealers dole out the remaining inventory.”

Other automakers will probably take advantage by raising their prices too. More inflationary pressure — but though higher prices on lower volumes may increase profit margins, they won’t do much for employment.