Grocery Chain CEO Predicts 14%-30%+ Food Inflation By October?
I wanted to shoot this quick video about the food inflation that's already here, but even more importantly how much worse it could get, according to billionaire grocery chain CEO, John Catsamitidis.
While I'm super passionate about teaching personal finance and how to deal with your microeconomics, I also want to start you down the path of looking at the macroeconomic trends like this one.
We're already seeing supply chain issues, weather anomalies and crop destruction globally and, while it take time for those realities to work their way into the supply chain, I believe it will happen inevitably and really fast when it does. So I want for you to be prepared for it when it does happen.
In the video, I share that my wife and I are preparing for this potential food hyper-inflation by stocking up on some staples like beans, rice and even some other items while prices are still relatively low and stable.
Here's a quote from the ZeroHedge article referenced in the video:
"American families are already struggling amid mounting price inflation that’s eating away at their budgets, with higher costs for housing, vehicles, and more. Yet a top CEO is warning that the growing inflation problem facing Americans could get much worse in the coming months.
The latest June data already show price inflation at a 13-year high, with prices having risen 5.4 percent year-over-year. Proponents of the big-government policies driving much of this increase insist the uptick in prices is only temporary. But billionaire and grocery chain CEO John Catsimatidis just predicted that overall price inflation, for consumer goods generally, will hit a 6 percent annualized rate by October.
In an interview with Fox Business, the CEO warned that his industry is seeing skyrocketing costs on the supply chain side, and that businesses will have to raise prices for consumers as a result.
“Food prices are getting higher, and we expect even more increases by October,” Catsimatidis said.
“You have to pass [those extra costs] on [to consumers] or you’re not doing your duty to God, your country, your employees, and your company.”
While we can’t know for certain, Catsimatidis said rising costs could mean an astounding 10 to 14 percent 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.
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 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."
So what do you think? Are you concerned about inflation? Do you think this is "real" or do you think it's just more mainstream media "fear mongering". Let me know in the comments below and let's keep the conversation going.
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