“Fed officials admit that inflation is here, and will be around for awhile, while they also claim that the increases will be transitory” — Paul Ebeling
A prediction from a grocery chain CEO that food prices could be 14% higher within just months because of inflation under Mr. Biden reminds Americans to remember just who is to blame.
The Big Q: Are food prices going up?
The Big A: Yes!
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 saying “by October you’re going to have over a 6% annualized rate of inflation.”
The report said the forecast from CEO Catsimatidis, also the CEO of Red Apple Group, a real estate and aviation company, came after it was confirmed US consumer prices rose last month at the fastest pace since August 2008.
The Labor Department said last wk prices rose 5.4% Y-Y with prices trending higher every month this year. Analysts surveyed by Refinitiv were expecting prices to rise 4.9% annually.
Mr. Polumbo explained, “While we can’t know for certain, Catsimatidis said rising costs could mean an astounding 10 to 14% 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 1 month, and food prices up 0.8% in that same frame.
CEO Catsimatidis when asked if he is going to be forced to pass the extra costs onto consumers said, “You have to pass it on otherwise you’re not doing your duty to guard your country, your employees and your company.”
Bottlenecks that developed during the US VirusCasedemic, workers who are being paid by the government to stay home, and more factors, are contributing to the rising food and energy prices.
The connection between Mr. Biden’s economic agenda and the food budgets of households abroad runs through the USD’s role in global commodity markets.
What the public does not know, when the Fed expands its balance sheet and prints USDs, using incorrectly stimulus to hide behind as it has been doing, it will usually be followed by increases in the price of such food commodities as corn, soybeans, and wheat, all Key food products.
This is because transactions in these markets, as they are for most global markets, are typically denominated in USDs. And if the Fed is pumping trillions of new Greenbacks into the financial system including questionable pork-barrel spending endorsed by the current White House and Congress, there are more USDs to buy the same stuff, as food commodities are stuff.
“The Fed’s actions that outlined above is why so many prices have been skyrocketing, including not just of food but of lumber, copper, US residential real estate, and US stocks.
“So, beware although food is not part of the calculator of the inflation rate, it definitely has its effects.
“To me, the effect is much more negative, than positive, as we are seeing today. So get prepared. Watch for an even more acceleration in food prices,” says LTN’s economist Bruce WD Barren.
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