A billionaire supermarket magnate in the US warns that food prices will “continue to rise,” potentially increasing by an additional 10%.
By Editorial Team | Primer Informe
John Catsimatidis, the billionaire owner and CEO of New York City’s Gristedes supermarket chain, argued on Monday that food prices will “continue increasing” over the next three months as the conflict between Russia and Ukraine persists and oil prices remain high.
Catsimatidis, who is also the CEO of United Refining Company and Red Apple Group, a real estate and aviation firm, predicted that within the next 30 to 45 days, food prices could spike an additional 10% amid inflation.
Inflation reached a 40-year high in February, with the consumer price index rising by 7.9% year-on-year, according to data released last month by the Bureau of Labor Statistics. Month-on-month, inflation increased by 0.8%.
The year-over-year figure aligns with estimates and compares to a 7.5% annual jump in January, marking the fastest increase since February 1982, when inflation hit 7.6%.
From January to February, nearly all categories of goods and services saw price hikes. Gas prices surged by 6.6%, contributing to nearly a third of price increases. Grocery costs rose by 1.4%, marking the sharpest monthly increase since 1990, aside from pandemic-induced price hikes two years ago. The cost of fruits and vegetables jumped 2.3%, the largest monthly increase since 2010.
Historic inflation in the US
Over the 12 months ending in February, food prices rose by 8.6%, the largest year-on-year increase since 1981, reported the government. Gas prices have surged by 38%. Housing costs increased by 4.7%, the biggest annual jump since 1991.
The inflation data for March will be released next week. The February data, which is the latest available, was collected prior to Russia’s invasion of Ukraine, which caused some essential goods prices to rise. The costs of wheat, corn, cooking oils, and metals like aluminum and nickel have skyrocketed since the onset of the war, given that Ukraine and Russia are leading exporters of these products.
As inflation rises, meat and poultry prices are also expected to continue climbing in the US this year, according to a recent analysis.
Catsimatidis claimed that if President Biden “changes course” on his energy stance and “opens up North America,” the US could become “self-sufficient” again, leading to a decrease in food prices as oil prices affect transportation costs.
With information from Fox Business and The Associated Press.
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