Inflation has been one of the great limitations for the economic reactivation in the country to consolidate, the shortage of products and the problems that have arisen in the supply chain make retail companies see the end of the year with little optimism.
Faced with such a scenario, the retail companies that sell food foresee that at the end of the year there will be significant increases in these essential products. This will have a direct impact on the consumer and on large businesses such as supermarkets .
According to the FOX chain, the retail firm Kroger , stated that inflation is increasing more than management previously anticipated and that expectations are now that prices will increase between 2% and 3% during the second half of this year .
The CFO, Gary Millerchip, spoke as part of the company’s quarterly earnings announcement , that Kroger is “passing the higher costs on to customers when it makes sense to do so.”
Meanwhile, Albertsons Companies Inc, a competitor of Kroger, reported earlier this summer that according to its studies and projections, inflation would increase in the second half of the year, so some of these increased costs would also be passed on to consumers.
From that the economy in the country was reactivated, the increases ments in commodities have been on the rise. According to the consumer price index, food has had an increase for six months in a row and has risen 2.6% this year, a percentage that is not less and more in times economic adversity.
According to official reports, half of the increase in food prices is due to the rise in the prices of beef, pork and birds. Beef prices have risen 14% this year, while pork costs rose 12. 1% and poultry prices are up 6.6%.
Prices rose in five of the six main supermarket food groups in July , prices only fell for fruits and vegetables. Category prices fell 0.9% after rising 0.7% in June.
The Federal Reserve has reported that price increases that have occurred in the wake of the Covid- 19 arguing that they are “transitory” and that these pressures will diminish as supply chain disruptions are resolved.
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