Inflation To Drive Up Grocery Prices By October, Warns Billionaire Owner Of Supermarket Chain

John Catsimatidis, the billionaire owner of supermarket chain Gristedes, warned Monday that inflation will drive up grocery prices by October, in contrast to President Joe Biden's reassurance that price rises were a transitory effect of COVID-19.

In an interview on “Varney & Co,” Catsimatidis said he is expecting “a 6% annualized rate of inflation” by October, FOX Business reported. Catsimatidis, who is also Red Apple Group’s CEO, said higher prices are having an impact on both food and oil businesses.

When asked by FOX Business’ Ashley Webster on how customers will be affected by added costs, Catsimatidis said food businesses have no choice but to “pass it on otherwise you’re not doing your duty to guard your country, your employees and your company.”

The New York supermarket chain’s CEO made his comments just a week after the Labor Department said that prices rose 5.4% year over year with prices trending higher every month this year. U.S. consumer prices increased last month at the fastest pace since August 2008.

The department said that the consumer price index rose 0.9% in June, faster than the 0.6% increase in May.

While Catsimatidis did not provide a specific projection on oil prices and only said he is expecting “higher numbers” in the sector, he projected an increase of 10 to 14 percent in food prices by October 1.

Catsimatidis’ warnings came on the same day when Biden called inflation “temporary” and “expected” as price hikes were the “transitory effects” of the COVID-19 pandemic.

Biden claimed that two bills he is looking to be approved by Congress this year would help reduce inflation.

Biden said his spending plan “will enhance our productivity,” thus encouraging an increase in wages “without raising prices.” He added that his plan will not trigger inflation further.

The Biden administration’s two bills are a supplementary $3.5 trillion budget reconciliation bill and a bipartisan $1.2 trillion infrastructure bill.

The president’s latest comments come following a recent poll by Marist and PBS NewsHour, according to which, 26 percent of adults said inflation is their biggest economic concern this year.

U.S. Treasury Secretary Janet Yellen confirmed that there will be a couple more months of “rapid inflation” and that it could go back to normal levels “over the medium-term,” CNBC reported.

There have also been concerns that Democrats may be trying to pressure an overheated economy despite price hikes. Biden said his administration is working hard to address recent price hikes.