Apple CEO Tim Cook said the company is under inflationary pressure, CNBC reported.

“We try to price our products for the value that we deliver and we are seeing inflationary pressure,” Cook said. “I think everybody’s seeing inflationary pressure. There’s no two ways about that.”

The observation by the head of the nation's most valuable company comes as the Biden administration and the Federal Reserve are grappling with questions about how to tame rising inflation and whether to raise interest rates.

The consumer price index rose 7% in December compared to last year, the fastest annual pace in nearly 40 years.

In an earnings call with analysts, Cook talked about how inflation is affecting Apple's business and gave the example of shipping costs.

“We’re seeing inflation and it’s factored into our gross margin and opex that [Apple CFO] Luca [Maestri] reviewed with you earlier,” Cook said. “Logistics, as I’ve mentioned on a previous call, is very elevated in terms of the cost of moving things around.”

Inflation didn't hurt Apple's business, which reported higher gross margins in the December quarter, and Apple didn't raise prices in response to US inflation. Cook did not rule out the possibility of higher prices either in an interview with CNBC or in Apple's earnings report.

Cook also said he expects supply chain restrictions that fuel inflation to ease in the coming months.

Apple doesn't often raise prices after product releases, although it does occasionally do so in response to regional economic conditions. Last year, for example, Apple raised prices at its Apple online store in Turkey as the lira fell and inflation in the country reached its highest level in two decades.

However, Apple occasionally raises prices over last year's models when it introduces new iPhones and other devices in the fall.