Inflation will drive food prices even higher by October: billionaire supermarket owner


Jean Catsimatidis, the billionaire owner and CEO of New York-based supermarket chain Gristedes, warned on Monday that inflation would push food prices up by October.

Speaking on “Varney & Co.” On Monday, Catsimatidis said he expected “by October you will have an annualized inflation rate of over 6%.”

Catsimatidis, who is also the CEO of Red Apple Group, a real estate and aircraft company, made the prediction a week after revealing that consumer prices in the United States rose last month at the fastest rate since August 2008 .

The Labor Department said on Tuesday that prices were up 5.4% year-over-year, with an upward trend every month this year. Analysts polled by Refinitiv had expected prices to rise 4.9% annually.

The annual data show a “basis effects” bias due to the drop in prices that occurred at the start of the coronavirus pandemic.

According to the department, the consumer price index rose 0.9% in June, faster than the 0.6% increase in May. Analysts polled by Refinitiv had expected a gain of 0.5%.

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Used car prices soared 10.5% last month, accounting for more than a third of the increase. In addition, energy prices rose 1.5% month over month and food prices increased 0.8%.

Catsimatidis noted that it is in both the food and oil sectors and that higher prices affect it in both areas.

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On Monday, Catsimatidis acknowledged the drop in oil as West Texas Intermediate crude, the US benchmark, fell from $ 2.62 to $ 69.19 a barrel after OPEC and its allies agreed to raise the price. production of an additional 2 million barrels per day from August. He said he expects “higher numbers” for oil as well.

Catsimatidis said he expects a 10-14% increase in food prices by October 1.

Ashley Webster of FOX Business asked Catsimatidis if he was going to be forced to pass the extra costs on to consumers.

“You have to pass it on otherwise you are not doing your duty to protect your country, your employees and your business,” he replied.

The rise in prices spilled over to large swathes of the economy as companies struggled to correct supply chain bottlenecks resulting from the pandemic. Some companies are also struggling to find workers, as additional unemployment benefits have encouraged workers to stay at home.

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The Federal Reserve has insisted the price gains are “transient” and will eventually return to pre-pandemic levels as the dislocations caused by the pandemic are corrected.

However, Fed Chairman Jerome Powell admitted the timing was “uncertain.”

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Jonathan Garber of FOX Business contributed to this report.

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