Wouldn’t a 40% wholesale increase translate to an even higher retail increase?
Not necessarily, depends on the retailers price structure. A retailer that typically marks up 100% might price a little lower to make it more palatable. And someone that marks up more than 100% would definitely not need to pass on a 40% increase.
Think of a restaurant with 30% of revenue goes towards ingredients. A 10% increase for ingredients expense would turn into 33%, to pass on a 10% increase to customers isn’t necessary. (Not a real example, I understand costs went up both for labor and ingredients).