Grocery billionaire businessman John Catsimatidis — the owner and CEO of Manhattan-based grocery chain Gristedes Foods — told Fox Business that Americans can expect higher prices for basic expenses in the coming months. He expects a food inflation of around 10% to 16% by October.
“We’re both in the food business, and we’re in the oil business. Food prices are getting higher, and we expect even more increases by October,” he said. “We’re seeing anywhere from 10% to 14% by October 1. It’s a real number.”
“And oil prices — I know they’re a little bit off today, but I expect even higher numbers,” Catsimatidis continued. “It’s a sine wave — everything just goes up and down. I expect by October you’re gonna have over a 6% annualized rate of inflation.”
He acknowledged that businesses must pass higher costs downwards to customers, when he responded: “You have to pass it on, otherwise you’re not doing your duty to guard… your employees and your company.”
During a speech on Monday, President Biden argued that inflation is temporary in nature:
We also know that as our economy has come roaring back, we’ve seen some price increases. Some folks have raised worries that this could be a sign of persistent inflation. But that’s not our view. Our experts believe and the data shows that most of the price increases we’ve seen are — were expected and expected to be temporary.
The reality is, you can’t flip the global economic light back on and not expect this to happen. As demand returns, there’s going to be global supply chain challenges. We’ve seen that in semi-conductors, which are used in automobiles. That global shortage has slowed vehicle production, creating a temporary spike in car prices. That’s a real challenge. And my administration is doing everything we can to address it. But again, these disruptions are temporary.
Now, I want to be clear: My administration understands that if we were to ever experience unchecked inflation over the long term that would pose real challenges to our economy. So while we’re confident that isn’t what we are seeing today, we’re going to remain vigilant about any response that is needed.