Billionaire Supermarket Owner Warns Food Prices Will ‘Keep Rising’ For Months To Come

Juan Catsimatidisthe billionaire owner and CEO of the New York City supermarket chain Gristedes, argued Monday that food prices “will continue to rise” for the next three months as the war between Russia and Ukraine continues and the price of oil remains high.

Catsimatidis, who is also the CEO of united refining company and Red Apple Group, a real estate and aviation company, said “Mornings with Maria” which predicts that within the next 30 to 45 days food prices will soar another 10% amid the inflationary environment.

Inflation hit a new 40-year high in February with the consumer price index rising 7.9% annually, according to data released last month by the Bureau of Labor Statistics. Month on month, inflation rose 0.8%.

The year-over-year reading is in line with estimates and compares with an annual jump of 7.5% in January, marking the fastest rise since February 1982, when inflation hit 7.6%.

OIL PRICES TURN AND HEAD FOR A LOSING WEEK

From January to February, almost all categories of goods and services became more expensive. Gas jumped 6.6% and accounted for almost a third of the price increases. Grocery costs rose 1.4%, the steepest one-month increase since 1990, apart from the pandemic-induced price spike two years ago. The cost of fruits and vegetables rose 2.3%, the largest monthly increase since 2010.

John Catsimatidis predicts that food prices will rise another 10 percent amid the inflationary environment. (Andrew H. Walker | Noam Galai/Getty Images/Getty Images)

During the 12 months ending in February, grocery prices rose 8.6%, the biggest year-on-year rise since 1981, the government said. Gasoline prices have risen 38%. And housing costs have risen 4.7%, the biggest annual jump since 1991.

Inflation data for March will be released next week. The February data, the latest data currently available, was taken before the Russian invasion of Ukraine, which pushed up the prices of some basic goods. The costs of wheat, corn, cooking oils and metals such as aluminum and nickel have skyrocketed since the war began, as Ukraine and Russia are the main exporters of those products.

As inflation rises, meat and poultry prices are expected to continue rising in the US this year, according to a new analysis.

Catsimatidis argued that if President Biden “changes course” on his energy stance and “opens up North America,” the US “can be self-sufficient” once again and “food prices will go down” as the price of oil impacts transportation costs.

He went on to recommend a North American energy deal, which will allow production of “15 million barrels a day” and in turn “make North America self-sufficient.”

“There is no reason why we should enrich our enemies and impoverish the American people,” he added. “And that’s what it all boils down to.”

HeartSecurityLatestChangeChange %
USEUNITED STATES PETROLEUM FUND LP74.17+0.05+0.07%
NOBUNITED STS BRENT OIL FD LP UNIT29.79-0.14-0.47%

Oil and gas prices have been rising as demand recovers from the depths of the coronavirus pandemic and demand rises. The invasion of Ukraine by Russia, a major oil and gas producer, has raised the risk that sanctions and export restrictions could negatively affect supply amid surging demand.

On Monday, a barrel of US crude oil gained $1.64 at around $101 a barrel in electronic trading on the New York Mercantile Exchange. Early last month, when oil supply disruptions were at their height, the price briefly touched $130.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Last week, oil prices fell about 13% after President Biden announced the largest release of US oil reserves.intended to help alleviate record gasoline prices in the US.

Brent crude, the international benchmark, was trading higher on Monday at around $106 a barrel.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

Associated Press contributed to this report.

Previous post Sensex Rises 1,335 Points to Regain 60,000 Mark; Nifty settles at 18,053: what led to the market rally
Next post Business News | Stock Market News | financial news
%d bloggers like this: