Inflationary pressure on prices is going to continue, an executive from a major U.S. supermarket chain warned this week.
Prices should be expected to rise another 2-3% in the second half of this year, according to Kroger CFO Gary Millerchip on Friday, adding Kroger will be "passing along higher cost to the customer where it makes sense to do so," The Epoch Times reported.
The White House is blaming the major meat packers for the rising costs for beef, poultry, and pork, despite record profits amid the pandemic, according to the report.
"Just four large conglomerates control the majority of the market for each of these three products, and the data show that these companies have been raising prices while generating record profits during the pandemic," National Economic Council Director Brian Deese told reporters this week, pointing at JBS, Tyson Foods, Cargill Meat Solutions Corp., and the National Beef Packing Company.
"Those companies have seen record or near-record profits in the first half of this year, and that has coincided with a period where we've seen disproportionate increase in prices in those segments."
Despite the rise in labor and transportation costs amid the Biden administration's bolstered unemployment benefits and costly clean energy agenda, Secretary of Agriculture Tom Vilsack blames price-gouging, according to the Times.
"Our job is to make sure that that farmer gets a fair price and that the producer . . . when I go to the grocery store, and I'm in the checkout line, I'm paying a fair price," Vilsack said.
The Biden White House did not reference the 8.3% in the Producer Price Index, including 0.7% in August from July alone, according to the Department of Labor report Friday.
"If we talk of 2022, it is likely that input cost inflation will be higher next year than this year," Nestle CFO Francois-Xavier Roger said at a consumer staples conference, the Times reported.
"Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it."
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