Posted on 01/28/2022 4:20:41 AM PST by blam
As some on Wall Street warn that the Fed remains dangerously behind the inflation curve (a fear that was given voice yesterday when Fed Chairman Jerome Powell’s comments on inflation during the post-FOMC press conference appeared to send stocks spiraling lower), one of America’s biggest makers of food and consumer goods has warned that more price hikes are coming.
To wit, Kraft-Heinz (in which Warren Buffett’s Berkshire Hathaway owns a big stake) said in a letter to customers that it will raise prices in March on dozens of its most popular products. The hikes will affect brands including Oscar Mayer cold cuts, hot dogs, sausages, bacon, Velveeta cheese, Maxwell House coffee, TGIF frozen chicken wings, Kool-Aid and Capri Sun, CNN reported.
Increases range from 6.6% on 12oz packs of Velveeta to a whopping 30% hike on a package of Oscar-Mayer turkey bacon.
Most cold cuts and beef hot dogs will go up around 10% and coffee around 5%. Some Kool-Aid and Capri Sun drink packs will increase by about 20%.
“As we enter 2022, inflation continues to dramatically impact the economy,” Kraft Heinz said in a letter dated January 24 to at least one of its wholesale customers that was viewed by CNN Business. The wholesaler shared the letter on the condition of anonymity to protect the company’s relationship with its suppliers.
Kraft Heinz is just the latest consumer manufacturer to announce plans to boost prices early in the year. Last week, P&G said that it would raise prices on Tide and Gain laundry detergents, Downy fabric softener and Bounce dryer sheets by an average of about 8% in February. Conagra, which makes such brands as Slim Jim, Marie Callender’s and Birds Eye, has said it plans to raise prices later this year.
The question now is how much of these price hikes will retailers pass on to customers? Given the thin margins that grocery stores operate on, it’s likely that most, if not all, of the hike will be incorporated into prices on the shelf.
For Kraft-Heinz, this isn’t the first time prices have been raised since the start of the latest “transitory” inflation wave. The brand just announced a 9% price hike on its beef, lean beef, hot dogs and some other products back in November.
Headline consumer prices surged 7% in December according to the most recent CPI data release, which was the strongest level in nearly 40 years. Food prices alone rose 0.5% MoM.
Beyond the US, global food prices have soared to levels unseen in a decade led by surging demand for wheat and dairy products following a year of severe drought and other environmental factors limiting production.
The question now is how many more times will K-H and its competitors hike prices before inflationary pressures finally ease?
"One of them is the rapidly growing fertilizer shortage. A few days ago, the Wall Street Journal ominously warned that “high fertilizer prices are weighing on farmers across the developing world”…"
What are the FBI gonna do for their white supremacist false flag bombs?
This is only the increase they want to admit — not the additional, and much more insidious price increase of product shrinkage…
I suppose Biden will now call a Kraft-Heinz greedy, immoral company. And maybe Democrats in Congress will demand an investigation.
Stalin used to call people who resisted his communist rule “wreckers”. I wonder how long before Democrats start using that same term.
On the plus side, it will be more expensive for lefties to drink their Kool-Aid.
;-)
In one week, a can of Progresso Soup went up forty (40) cents a can. From $1.69 to $2.09. That's a 24% price hike!
I saw some old hag in a VW Beetle (of course, w/ a flower vase on the dashboard) angrily tearing an “I Did That” sticker off a gas pump in Juno Beach yesterday. Too funny.
Probably the choice word substitute for “wreckers” will be, saboteur.
Yeah but no more mean Tweets!!!
Good job progressives!!!
I’m in the regime’s anti inflation plan. I got a 6+% COL in my Social Security and an 18% increase in Medicare premium. Net, I’m operating at 1% above last year. Thanks to the regime, I’m not out there driving up prices.
Until yesterday, my last fill-up about ten days ago was at $3.05/gal in Will County, IL.
Yesterday, gas was $3.50/gal. A forty-five cent per gallon increase. In ten days.
At this rate we're going to be Venezuela by June.
I hope they all starve to death. Every. Single. One of these so-called 81,000,000 Biden voters.
Anyone who complains about inflation is an "Insurrectionist".
Yes, I agree. As far as I’m concerned, I hope they all starve to death or eat each other.
The last few trips to the grocery store have been eye opening experiences. Large sections of shelves empty and prices thru the roof have really shaken me to the core and for the first time in my 60 years I feel genuine fear for this country and for a way of life that was the gold standard around the world. Stay safe everyone.
Nice respect of private property rights. Doubting that you are a conservative if you think that’s okay to do.
Kraft-Heinz = processed food, mostly junk food. It’s the cost of unprocessed food that hurts me.
Here’s a conservative principle for you: IDGAF what you think.
Media-driven zombies
🧟♂️🧟♀️🧟
Cost of goods will take that and leave you behind. I know I already am.
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