On the heels of a prediction from a grocery chain chief that food prices could be 14% higher within just months – because of inflation under Joe Biden – an expert is reminding Americans to remember just who is at fault.
Brad Polumbo wrote, for the Foundation for Economic Education, in a posting at the Liberty Loft, “When we hear terms like ‘Consumer Price Index’ or ‘expansionary monetary policy,’ the conversation surrounding inflation quickly becomes inaccessible for many people, whose eyes understandably glaze over amid discussion of the abstract-seeming phenomenon.”
But, he explained, “at its core, price inflation is simply a question of our purchasing power being eroded. Because what really matters is not the number on our paychecks, it’s what that number can buy us. So, Americans should react to a 6 percent rise in consumer prices just as vociferously as they would react to having their salary cut. It’s essentially the same thing.”
“And, as we’ve previously explained here at FEE, consumer price inflation can ultimately be traced back to the policy decisions made by the federal government. So, don’t let them off the hook when your grocery bills start to spiral upwards. Remember whose fault it really is.”
His comments followed a Fox Business report that included comments from John Catsimatidis, the billionaire owner and CEO of New York City supermarket chain Gristedes.
He warned inflation will lead to even higher grocery prices by October. Speaking on “Varney & Co.” he predicted “by October you’re going to have over a 6% annualized rate of inflation.”
The report said the forecast from Catsimatidis, also the CEO of Red Apple Group, a real estate and aviation company, came after it was confirmed U.S. consumer prices rose last month at the fastest pace since August 2008.
The Labor Department said this week prices rose 5.4% year over year with prices trending higher every month this year. Analysts surveyed by Refinitiv were expecting prices to rise 4.9% annually.
Polumbo explained, “While we can’t know for certain, Catsimatidis said rising costs could mean an astounding 10 to 14 percent specific increase in grocery prices by October. That’s truly a shocking amount. But this warning offers more than insight into the grocery industry. It’s a painful reminder of how price inflation hurts everyday Americans.”
Fox Business cited a 10.5% spike in used car prices, 1.5% hike in energy over just one month, and food prices up 0.8% in that time.
The report said, “FOX Business’ Ashley Webster asked Catsimatidis if he is going to be forced to pass the extra costs onto consumers.”
“You have to pass it on otherwise you’re not doing your duty to guard your country, your employees and your company,” he responded.
Bottlenecks that developed during the COVID pandemic, workers who are being paid by the government to stay home, and more factors, are contributing.
Federal officials have admitted that inflation is here, and will be around for awhile. But they also claim that the increases will be “transitory.”
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