As “Hoarding” Intensifies, Will Food Prices Go Up More Than 10 Percent “In The Next 60 Days”?
Francesco Abbruzzino, The Uncensored Report, LLC
Food is about to become a lot more expensive. Of course food prices always rise, but Americans are about to be really shocked by how aggressively they are going to increase in the months ahead. It is really just a matter of basic economics. Thanks to the most epic supply chain crisis in U.S. history, our grocery stores are having a really tough time staying stocked. Meanwhile, the more the mainstream media reports on “shortages”, the higher demand goes. When people hear that something is going to be scarce, it is only human nature to be motivated to stock up while you still can. There are accusations that some people are “hoarding”, but the truth is that we haven’t seen anything yet. When the American people begin to wake up to the fact that the supply chain problems that we are facing are not just “temporary”, the real “hoarding” will begin.
This week, billionaire supermarket owner John Catsimatidis was asked about the current state of affairs during an interview on Fox Business. In response, Catsimatidis warned that food prices would be going up “over 10 percent” within the next 60 days…
“I see over 10 percent [price increase] in the next 60 days,” he said in an interview with Fox Business on Monday, adding that the trend will not drop “anytime soon.” Catsimatidis cited rising inflation and supply chain bottlenecks that are currently plaguing supermarkets and other retailers around the United States.
Catsimatidis then cautioned: “I see food prices going up tremendously” because food company CEOs “want to be ahead of the curve and the way they’re doing it is they’re dropping all promotions. They are dropping low-moving items.”
10 percent in 60 days would equate to roughly a 60 percent rate of food inflation on an annual basis.
So that seems like a pretty extreme projection to me.
But Catsimatidis lives and breathes the food industry every day and I do not. He is in a position to know the trends, and I think that we should all take his ominous warning very seriously.
Another industry executive that was interviewed by Bloomberg says that “people are hoarding” and he is openly admitting that “all prices will go higher”…
Many food suppliers are planning for these hiccups and shortages to last.
Saffron Road, a producer of frozen and shelf-stable meals, is holding extra inventory, keeping about four months of supply on hand instead of the typical one or two months.
“People are hoarding,” said CEO and founder Adnan Durrani. “What I think you’ll see over the next six months, all prices will go higher.”
One of the biggest problems that the food industry is facing right now is simply a lack of workers.
There aren’t enough bodies to do the things that need to get done, and that is causing major problems.