Expected price increases on these grocery products until the end of the year

With the cost of meat and other groceries in the United States rising steadily since the start of the pandemic, grocery retailers and the Biden administration have weighed on the increases, which are expected to continue through the end of the pandemic. the year.

The surge in certain categories of “home food” has caused stores – already hit by inflation and demand – to aim for higher product prices until the end of the year.

In an earnings call Friday, Kroger’s chief financial officer and senior vice president Gary Millerchip said the retailer would “pass higher costs onto the customer where it makes sense.”

The nation’s largest retail operator reported a year-over-year increase in sales of produce, flowers, cold cuts and baked goods, but Millerchip admitted he was juggling pressures such as l ‘increased supply chain costs associated with increased flights which could drive up prices in the second half of the year.

Last week, White House statistics revealed that meat makes up half of the increases in home food prices, and since December 2020 prices have jumped on three main commodities – beef, up 14%. , pork by 12% and poultry by 6.6%.

The data, supported by the latest summary of the Bureau of Labor Statistics Consumer Price Index, found that the cost of meats, poultry, fish and eggs rose for the seventh consecutive month. The latest CPI statistics for August are expected to be released this week.

While many Americans purchase groceries to reduce the costs of restaurant meals and others cook at home to avoid contact with in-person meals, the demand for food from retailers has continued to grow.

The Biden-Harris administration noted in a statement that it’s not just consumer habits that are driving prices up.

“The price increases are also due to a lack of competition at a key bottleneck in the meat supply chain: meat processing,” the memo reads.

According to the White House, the four major conglomerates that control the majority of the market for these products “have raised prices while generating record profits during the pandemic.”

The administration said it is “taking bold steps to enforce antitrust laws, boost competition in meat processing and stave off pandemic profits that hurt consumers, farmers and ranchers across the country.”

Americans are gearing up for fall, back to school, the upcoming vacation and other food-related plans where retail prices will be an important clue to watch.