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Attack on America? Prices for Food and Energy Increase Again

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EDITOR NOTE: Billionaire grocery store magnate John Catsimatidis joined FOX Business this week to clearly explain how inflation is an "attack on America" and a tax on the middle class and the poor. Rising inflation will be hitting grocery stores, gas stations, and American homes in the next few months, and the prices for food, gas and heating oil will begin skyrocketing. Joe Biden is begging OPEC to release more oil reserves to stop the rising prices, although the administration refuses to drill more in the U.S. because of “climate change.” As prices at the pump rise, Catsimatidis explained, "we’re transferring a lot of wealth” to the Middle East, China, and Russia. He also said that “Washington is lying to the consumer," as increased taxes on corporations from the Democrat-controlled Congress are also raising prices for Americans. If the Fed doesn’t get a handle on this inflation soon (which there is little to suggest they will), it is the majority of Americans who will suffer greatly, not corporations and the 1% as we’ve been told.

John Catsimatidis, the billionaire owner and CEO of New York City supermarket chain Gristedes, warned on Tuesday that inflation is causing an "attack on America." 

He argued on FOX Business' "Mornings with Maria" that the poor and middle classes are getting "hurt" by inflation, noting that increased oil prices leads to higher transportation and food costs. 

"It’s not the rich that are getting hurt," Catsimatidis said. "It’s the poor and the middle class in America that will be hurt because of inflation." 

He noted that price increases will appear in his supermarket chains in September and October.

The U.S. Labor Department reported last week that prices for food and energy increased in July. On Wednesday the Labor Department reported that its consumer price index rose 5.4% year-over-year in July, matching the prior month's gain as the fastest since August 2008

Prices increased 0.5% last month, slowing from June’s 0.9% increase. Analysts surveyed by Refinitiv were expecting a 0.5% gain. 

The energy index rose 1.6%, buoyed by a 2.4% gain in gasoline prices. 

The Labor Department reported that the price of gas increased 41.8% from the year before and that the price of food increased by 3.4%. 

Gas prices have been increasing at the pump for the past few weeks, reaching a national average of $3.19 a gallon as of Monday, which is the most expensive gas price average of the year and $1.01 higher than the same time in 2020, according to AAA. On Tuesday, the national average dropped slightly to $3.18, according to the association. 

Gasoline demand fell to 9.43 million barrels per day last week, down from 9.78 million the week prior. Weaker demand has weighed on the price of crude oil with West Texas Intermediate down from its July 30 close. 

On Tuesday, West Texas Intermediate crude oil, the U.S. benchmark, slid 35 cents to $66.94 a barrel. 

Last week, the Biden administration urged OPEC and its allies to increase oil output to tackle rising gas prices that the administration views as a threat to the global economic recovery. 

"While OPEC+ recently agreed to production increases, increases will not fully offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022," a statement from National Security Advisor Jake Sullivan said. "At a critical moment in the global recovery, this is simply not enough." 

The request came as the Biden administration attempts to tackle climate change and discourages drilling at home.  

President Biden revoked the permit for the Keystone XL oil pipeline project on his first day in office in a series of orders aimed at combating climate change, which also included temporarily suspending the issuance of oil and gas permits on federal lands and waters.

OPEC and its allies believe an added increase to oil production is not necessary despite U.S. pressure to add supplies, Reuters reported, citing sources.  

Last month, OPEC+ ministers had agreed to boost supply starting in August until December 2021 by a further 2 million barrels per day, the group reportedly said in a statement.

OPEC+ last year cut production by a record 10 million barrels per day due to collapsed demand during shutdowns resulting from the coronavirus pandemic. 

The group had gradually reinstated some supply to leave it with a reduction of about 5.8 million barrels per day.

Catsimatidis warned on Tuesday that American is in a "very serious situation" as prices continue to rise. 

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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