October 26, 2021
Billionaire supermarket owner warns higher prices will stick around ‘at least until mid-2022’

Billionaire supermarket owner warns higher prices will stick around ‘at least until mid-2022’

John Catsimatidis, the billionaire owner and CEO of New York Metropolis supermarket chain Gristedes, warned that higher prices for issues like meals and fuel will stick around “at least until mid-2022.”

Catsimatidis made the prediction talking with FOX Enterprise’ Neil Cavuto through the FOX Enterprise particular “Inflation in America” on Wednesday, shortly after it was revealed that U.S. shopper prices final month accelerated at their quickest annual tempo in 13 years. 

Catsimatidis instructed Cavuto that inflation is admittedly “a tax on the poor and a tax on the middle class because when corporations are going to be taxed and they pass it down to the stores, guess what? They’re going to raise the prices.” 

“They will either raise the prices or go bankrupt,” he added.

The Client Value Index rose 5.4% yr over yr in September, in response to the Labor Division, matching the July studying for the most popular print since 2008. Prices elevated 0.4% month over month. 

MCCORMICK CEO SAYS ‘UNPRECEDENTED’ DEMAND FOR SPICES IS HARD TO KEEP UP WITH

Analysts surveyed by Refinitiv have been anticipating prices to rise 5.3% yearly and 0.3% in September. 

Meals prices jumped 0.9% final month and at the moment are up 4.6% yearly, in response to the index. The worth for meats, poultry, fish and eggs soared 10.5% this year, whereas beef prices climbed a whopping 17.6%. Vegetables and fruit rose by 3%. 

Catsimatidis famous that corporations are confronted with higher enter prices and that results in higher prices on the grocery retailer. 

He harassed that corporations “don’t want to have a bad quarter” so they’re passing alongside their higher prices to the patron. 

People are additionally coping with hovering prices for vitality, which climbed 1.3% in September and is now up 24.8% over the previous yr, in response to the Client Value Index launched on Wednesday. 

For People incomes the median annual earnings of about $70,000, inflation has compelled them to spend an additional $175 a month on meals, fuel and housing, the New York Post reported final week, citing Mark Zandi, the chief economist at Moody’s Analytics. 

Catsimatidis, who can be the CEO of United Refining, argued that the higher prices People are seeing for fuel “started the first week Biden was in office and he kills the pipeline.” 

In a collection of orders aimed toward combating local weather change, President Biden quickly suspended the issuance of oil and fuel permits on federal lands and waters and canceled the Keystone XL oil pipeline venture.

President Biden revoked the allow for the 1,700-mile pipeline on his first day in workplace, ending a venture that was anticipated to make use of greater than 11,000 People this yr.

Catsimatidis identified that below former President Trump America was producing extra oil each day, in comparison with now. 

He famous that the worth of oil went from about $40 dollars a barrel to about $80 {dollars} a barrel since President Biden has been in workplace. 

On Wednesday, West Texas Intermediate crude oil slid 71 cents to $79.93 a barrel. 

“Don’t kill America,” Catsimatidis mentioned on Wednesday, arguing that the dominant participant within the oil trade is now Russia. 

“We turned it over to the Russians,” he mentioned. 

Fuel prices have jumped throughout the nation, leaving solely six states with prices below $3 per gallon as of Tuesday.

The nationwide common stood at $3.29 on Wednesday, barely higher from the day earlier than and $1.11 greater than the identical time final yr, according to AAA.  

“The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50% and 60% of the price at the pump,” Andrew Gross, a AAA spokesperson, mentioned. “And last week’s decision by OPEC and its oil-producing allies to not increase production further only exacerbated the upward momentum for crude oil prices.”

On Wednesday, Brent crude fell to $82.79 a barrel. Two days earlier, the worldwide oil benchmark, reached $84.60, its highest since October 2018.

Catsimatidis harassed that when “crude oil goes from $40 to $80 dollars a barrel and the United States reduced production and we’re getting screwed up in Canada with the pipeline situation, not getting our crude oil from Canada, what happens? The price went up to $80 dollars a barrel and we’re paying [Russian President Vladimir] Putin and we’re paying OPEC $80 dollars a barrel for the crude oil.” 

He then defined that the elevated worth for oil results in higher prices for meals as a result of “everything is delivered to the grocery stores by truck.” 

Catsimatidis added that the worth hikes from producers are additionally a results of higher prices for labor, a scarcity of truck drivers, in addition to different elevated enter prices. 

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FOX Enterprise’ Jonathan Garber contributed to this report. 

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