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Big companies are using inflation, the pandemic and the crisis in the supply chain to fill their own pockets by increasing the price of everyday goods, an expert claimed.
Multinationals such as PepsiCo have increased the cost of popular products and increased their profits by millions of dollars, it has been alleged.
Campaigners say some companies are using real economic problems as an “excuse” to raise prices more than necessary.
Average food prices in the US rose by 11.2 percent between September 2021 and September 2022.
Cereals and bakery products were up 16.2% during that time; meat, poultry, fish and eggs are 9% more expensive; and dairy is 10.4% more expensive.
Kyle Herrig said big companies ‘didn’t have to raise prices for struggling families so high’
As food inflation rages, major corporations are accused of raising prices while delivering handsome profits
A bag of chips in the supermarket now costs an average of $6.05, an increase of $1 since last year
PepsiCo is one of many companies raising prices while increasing profits by millions of dollars
In practical terms, a bag of chips in the grocery store now costs an average of $6.05, up $1 from last year.
A dozen eggs costs an average of $2.90, compared to $1.83 a year ago.
The price of a two-liter bottle of soda has risen 49 cents to $2.17.
But some companies that have raised prices are making nice profits, leading to complaints that consumers are being ripped off.
Kyle Herrig, chairman of advocacy group Accountable.Us, told the New York Times“Recent earnings calls have only reinforced the familiar and unwelcome theme that companies shouldn’t have to raise prices so high for struggling families.
“The calls tell us that companies have used inflation, the pandemic and supply chain challenges as an excuse to exaggerate their own costs and then throw consumers off the money.”
PepsiCo prices for drinks and chips are up 17 percent in the last quarter, compared to the same period last year, the Times reported.
Inflation spiraling out of control has left millions of Americans stressed and worried about the future
And profits for the third quarter of 2022 grew more than 20 percent.
Chipotle Mexican Grill has also raised prices, saying some items will be nearly 15 percent more expensive by the end of 2022 than last year.
In the last quarter, the company’s profit was 26 percent higher than a year earlier, at $257.1 million.
The issue of food inflation was highlighted over the Halloween weekend with figures showing that the price of some candies has jumped by nearly half.
Amid the cost of living that experts say people are turning to junk food, the prices of individual candies are rising, with Mars’ Skittles rising as much as 42 percent and Starburst 35 percent, according to Datasembly.
Crunch bars and Butterfingers have made more modest price increases of seven and six percent, respectively. The average price of a candy bar has increased by 13 percent, according to the Labor Department.
Only Hershey seems to have been immune to the ghostly prices and hasn’t changed the cost of a chocolate bar since inflation started.
According to the National Retail Foundation, Americans will spend a total of $10.6 billion on Halloween candy by 2022. In comparison, Americans spent $10.1 billion last year.
Rising food inflation was highlighted by the date showing the rising cost of candy on Halloween
Core inflation, excluding volatile food and energy prices, rose 6.6% in September
Senator Bernie Sanders of Vermont criticized the price hikes, tweeting last week: “While the cost of Halloween candy has risen more than 13.1% since September last year, the Mars candy bar family became 44% richer during the pandemic, causing their net worth increased by $32.6 billion.
The Mars family is now worth $106.8 billion. You know what’s scary? Collective greed.’
Half of Americans say runaway inflation and a high cost of living are negatively impacting their health as millions increase their drinking, junk food and smoking as concerns about electricity and gas bills mount this winter.
According to a recent Bloomberg projection, the U.S. economy was 100 percent likely to plunge into recession in the next year. Previously, economists had estimated a 60 percent chance of a recession.
Year-over-year data for August shows gas costs rising and inflation highest in 40 years
“As we move further into the cost of living crisis, its impact is starting to show,” said Matt Booth, a researcher on the study.
“It affects everything from our personal health to how we plan our groceries and where we cut corners to save money.”
Nearly three-quarters of Americans said they were concerned about the rising cost of electricity and gas, the poll found, as consumers saw sharp increases in the price of heating oil, propane and other fuels in the coming colder months.
Nearly two-thirds of those surveyed said the energy crisis and rising cost of living affected their spending plans.