An executive of Kroger, one of the largest supermarket chains in the United States, is warning that food prices will rise even faster over the next 6 months to a year, with the prices for beef, chicken, and pork leading the way.
The exec says the problem lies with the fact that there are only four or five meatpackers who dominate the market and they are raking in a fortune and making huge profits by raising their prices.
Inflation is running much hotter than the Democrats have been saying and the policies of Joe Biden’s assures that things will get much worse before they get even a little better. His destruction of our oil independence has been a real killer and it will only get worse. The best estimates show that inflation will climb another 2 to 3 points before the end of the year.
Kroger CFO Gary Millerchip told reporters that Kroger’s will be passing on the price increases wherever it makes sense, which will mean across the board.
That means they will be raising prices on most things but food suppliers will fall back on their old strategy of reducing the size of their packages in an effort to fool people into thinking the price of those items is remaining stable.
Said National Economic Council Director Brian Deese at a press briefing:
“Just four large conglomerates control the majority of the market for each of these three products [beef, pork and poultry], and the data show that these companies have been raising prices while generating record profits during the pandemic.”
“Those companies have seen record or near-record profits in the first half of this year. And that has coincided with a period where we’ve seen a disproportionate increase in prices in those segments.”
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Other than Kroger’s warning, food giant Nestle’s Chief Financial Officer, Francois-Xavier Roger, acknowledged a higher input cost inflation in 2022 than this year.
“If we talk of 2022, it is likely that input cost inflation will be higher next year than this year,” Roger said at a Barclays consumer staples conference, reported the Reuters news agency. “Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it,” he said.
Earlier this year, CEO of supermarket chain Albertsons, Vivek Sankaran, said that regarding inflation, “It could go a little bit higher, but … we have a strong consumer” base in the United States.