The White House addressed concerns about rising meat costs.
With the cost of meat and other groceries in the U.S. steadily rising since the start of the pandemic, grocery retailers and the Biden administration have weighed on the increases, which are expected to continue through the end of year.
The rise in certain categories of “eating at home” has stores, already hit by inflation and demand, that set their sights on higher commodity prices by the end of the year.
In a earnings call on Friday, Kroger chief financial officer and senior vice president Gary Millerchip said the retailer “will result in a higher cost to the customer where it makes sense to do so.”
The country’s largest retailer reported year-over-year sales of products, florals, charcuterie and bakery, but Millerchip acknowledged they are juggling pressures such as higher supply chain costs along with l ‘increase in theft that could drive up prices in the second half of the year.
Last week, White House statistics revealed that meat accounts for half of home food price increases and that, since December 2020, prices have risen in three main products: beef, which increases by 14%, pork by 12% and poultry by 6.6%.
The data, supported by the latest summary of the consumer price index from the Bureau of Labor Statistics, found that the cost of meat, poultry, fish and eggs rose for the seventh consecutive month. The most recent August CPI statistics are expected to be released this week.
As many Americans buy groceries to reduce the costs of eating out and others cook at home to avoid contact with dining rooms in person, the demand for food from retailers has continued to grow.
The Biden-Harris administration noted in a statement that not only consumer habits lead to higher prices.
“Price increases are also motivated by a lack of competition at a key bottleneck in the meat supply chain: meat processing,” the note states.
According to the White House, the four large conglomerates that control most of the market for these products “have been raising prices while generating record profits during the pandemic.”
The administration said it “is taking bold steps to enforce antitrust laws, increase competition in meat processing and delay the benefits of the pandemic that are harming consumers, farmers and ranchers across the country.”
Americans are gearing up for fall, back to school, the upcoming holidays and other food-related plans, where retail prices will be an important index to consider.