According to one of America’s largest supermarkets, supermarket prices will rise three percent before the end of the year.
Cincinnati-based Kroger generated $ 132 billion in sales last year, but the company said inflation is running higher than management previously predicted, altering its price expectations.
Now bosses say they predict prices will rise by 2 to 3 percent during the second half of this year.
White House statistics revealed last week that rising meat prices are responsible for half of the rise in home food prices since December 2020.
Since December, beef prices have risen 14%, pork 12% and poultry 6.6%.
Kroger “will pass on a higher cost to the customer where it makes sense to do so,” chief financial officer Gary Millerchip said Friday in the company’s second-quarter earnings call.
The management of Albertons Companies, which operates 21 retail brands, including Albertsons, Jewel-Osco and Safeway, reported an estimated revenue of $ 70 billion in 2020 and expressed similar concerns about inflation scalding during the second half of this year.
They also said they should raise the prices of some of their products.
Additional prices for groceries would add more pressure on consumers, as they are already facing the largest annual increase in consumer prices since August 2008.
According to the White House, beef, pork and poultry account for the full half of the increase in home food prices since December 2020. Since then, beef prices have risen 14%, pork 12.1% and poultry 6.6 percent
IMAGE: The annual increase in the rate of transport of ocean goods has increased dramatically from January 2020 (below 500) to January 2021 (leveled at 2500), which hinders international trade in goods
The consumer price index (CPI) of all items, a measure of inflation across the economy, has risen 0.5 percent from June 2021 to July 2021 before the seasonal adjustment , 5.4 percent more than in July 2020.
August CPI statistics are expected to be released this week.
The CPI for all foods rose 0.7 percent from June 2021 to July 2021 and food prices were 3.4 percent higher than in July 2020.
The CPI for eating out (restaurant shopping) rose 0.8 percent in July 2021 and was 4.6 percent higher than in July 2020.
The consumer food price index at home increased by 0.6 percent from June 2021 to July 2021, contributing to a 2.7 percent year-round increase until to 2021.
Red meat, including beef, veal and pork, as well as poultry are the items that will see the highest effects of prices, if they haven’t already.
Beef and veal prices rose 0.5 percent from June to July 2021, and pork prices rose 2.2 percent; and poultry prices rose 1.9 percent.
The consumer price index (CPI) of all items, a measure of inflation across the economy, has risen 0.5 percent from June 2021 to July 2021 before the seasonal adjustment , 5.4 percent from July 2020. August CPI statistics will be released this week
Beef prices have risen 14 percent this year, while pork prices have risen 12.1 percent and poultry prices are up 6.6 percent.
These increases follow five consecutive months of price increases for all three categories. Prices have been driven by strong domestic and international demand, high food costs and supply chain disruptions due to the Covid pandemic.
Winter storms and drought affected meat prices this spring and closures of processing facilities due to cybersecurity attacks affected beef and other meat production in May.
Beef and veal prices are expected to rise by four to five percent in 2021.
Pork prices are expected to rise by five to six percent, while poultry prices will rise by three to four percent.
Prices for the aggregate category of “meats” are expected to rise by 3.5 to 4.5 percent over the rest of 2021.
Of all the CPI home-cooked food categories followed by the U.S. Department of Agriculture’s (USDA) Economic Research Service, the fresh fruit category has had the largest relative price increase (4.9%) ) and the smallest fresh vegetable category (0.4%) compared to last year.
The U.S. Department of Agriculture (USDA) Economic Research Service reported that the fresh fruit category had the largest relative price increase (4.9 percent) and the fresh vegetable category the smallest (0 , 4 percent)
No food category has decreased in price in 2021 compared to 2020.
The Federal Reserve has said the numerous price increases that have occurred since the start of the pandemic are “transient” and that these pressures will disappear as supply chain disruptions and shortages are resolved.
However, the Biden administration said there are other reasons for inflation, in addition to rising demand and supply chain problems.
The administration points to meat processors, saying it is concerned about “taking advantage of the pandemic” and the lack of competition within the industry.
The International Monetary Fund predicted rising food prices before the start of the pandemic, which would go back to January 2018
The Biden administration is looking for solutions to stop the fluctuation of food and producer prices (pictured) by addressing the meat processing industry
“Only 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 raised prices while generating record profits during the pandemic, “National Economic Council director Brian Deese said on Wednesday.
The administration is “taking bold steps to enforce antitrust laws, increase competition in meat processing and delay the lucrative pandemic that harms consumers, farmers and ranchers across the country,” according to Deese.
It remains to be seen whether or not the administration’s efforts will contribute to a possible decline in prices.
Meanwhile, customers opt for private label brands as a cost-effective temporary solution.
“If you go back to earlier times when you had inflation, the customer would often switch to our brands as part of structuring their budget,” said William McMullen, CEO of Kroger. “We’re not seeing budget changes in our brands right now, but I’m sure if inflation continued.”