Prices at the supermarket keep rising. So do corporate profits.

[ck4829]

Ordinary Americans have been watching their grocery bills climb to new heights as prices rise on cereals, meat, dairy, fruits, and vegetables — virtually everything we eat. According to the US Department of Agriculture, the price of food for home consumption rose by 11.4 percent last year — the highest yearly percent change since 1974 – and it’s expected to rise by another 8.6 percent in 2023. Compare that to the last two decades, when average year-to-year food price inflation was 2 percent. Consumers are at the limit of what they can afford.

For the most vulnerable families, the squeeze at the grocery store has become that much more dire. A recent survey of American households that receive food stamps conducted by financial software company Propel showed that almost a third were skipping meals, eating less, or relying on food banks as food prices balloon. On March 1, a pandemic boost to the food stamps program ended, and households will now on average have $95 less per month to spend on food.

Food companies say their price increases merely reflect how much their costs have gone up due to “inflationary pressures,” like higher labor costs, transportation delays, and capacity issues, or the higher price of grains and animal feed. Yet inflation in 2022 outpaced the rise in wages in most industries, and the prices of many agricultural commodities have come down.

The eyebrow-raising spikes at the grocery store can only partly be blamed on manufacturers’ higher costs. The inflation narrative offers the perfect jumping-off point for companies to raise prices, and major food manufacturers are taking advantage of the moment to boost their profits.

https://www.vox.com/money/23641875/food-grocery-inflation-prices-billionaires

[SalamanderSleeps]

1. The board of Kroger are laughing their asses off.

They are gouging and everyone knows it.

[louis-t]

5. I assume their costs went up about 20%.

They've raised prices up to 50%. Here's an idea. If you don't absolutely need something they just raised the price on by 50%, don't buy it. The price will eventually come down. I've watched Wendy's and Starbucks raise prices by 50%. Wendy's is hiring at "up to $11 an hour". They have $9 hamburgers and they only pay up to $11 an hour? I don't see lines at those places anymore so their customers are reacting. I don't go unless I have a coupon and even then it's ridiculous. 2 skimpy Arby's roast beef and small drink that's mostly ice, with coupon, $8.65.

[CountAllVotes]

6. Subway

A foot long at Subway used to be $5.99 w/coupon.

Now it is $7.99 w/coupon.

I was never very fond of Subway but now I simply don't go there and buy anything from them any more.

Their food kind of sucks anyway IMO.

[louis-t]

7. I get 2 footlongs for $10 and 2 free cookies.

I have a rewards card so they send me BOGO deals. I fill out the survey for the free cookies. Love the meatball subs. I don't get toasted anymore because it turns the bread into crumbs.

My mom went there and bought 2 6" subs and 2 cups of soup. $28.

[Diamond_Dog]

2. The wonderful free market ....

Wonderful for a few.

[bucolic_frolic]

3. Price increases have not been uniform across retailers, suppliers, or manufacturers

suggesting plain old scalping is the real reason. Smaller towns dominated by a handful of retailers, some regional or foreign-owned multinational, some the biggest of big box stores. What has disappeared is closeout merchants offering near expiration merchandise.

Retailers are testing what they can get, they're making up higher wage bills, and inhaling the profits.

If big box is price gouging you, consult with regional retailers.

[Hugh_Lebowski]

4. Feels like almost everything at the Safeway & Walgreens by my house

Has gone up 40-60% since the pandemic started.

[Waterguy]

8. Agree - but it's a tough call

real wages have grown, and this definitely does contribute to cost.

but, we did see the most major inflation happen when there were real supply shortages - many due to monopolies regarding shipping and delivery, also the difficulty with having enough people to do the work during the shutdowns.

this happened all over the world, this and the Russian invasion of Ukraine which caused a major energy crisis once the world rebounded and all of the sudden had its energy needs regarding a needed functioning supply chain returning back to normal - regarding petrol required for transport/general transportation. (during the initial phase of the shutdown oil prices sank like never before - at least in my 65 year lifetime, which reminds me, even if Trump was able to pump incredible amounts of oil out of currently protected areas in the US, and somehow significantly reduce the cost of crude - how much do you think the major oil companies would appreciate the lowered consumer cost? - I think you should consider that)

and now that inflation is finally starting to stabilize, and it is very near the Fed's mandated rate of 2% - I think it's about continued growth now, and I think it's about educating and informing the public - and as long as I've been around, an informed public that works together is always the best policy. The narrative we all need is the truth - and I think it's the best strategy any leadership can deploy.

Which means we do need alternate sources of green energy for a variety of reasons - global warming, pollution, the fact that people all over the world need it to survive - and for a variety of reasons, too many to mention in a single post. And that's the Truth!