According to an expert, giant companies are using inflation, the pandemic and the supply chain crisis to line their own pockets by raising the prices of everyday goods.
Multinational companies like PepsiCo have reportedly increased the cost of popular products while increasing their profits by millions of dollars.
Activists say some companies are using real economic problems as an “excuse” to raise prices more than necessary.
Average US grocery prices increased 11.2 percent from September 2021 to September 2022.
Cereals and baked goods are up 16.2% over the period; Meat, poultry, fish and eggs are 9% more expensive; and dairy products are 10.4% more expensive.
Kyle Herrig said big companies don’t have to raise prices so high for families in trouble.
As food inflation rages, giant corporations are accused of raising prices while making handsome profits
A bag of chips at the grocery store now averages $6.05, up $1 from last year
PepsiCo is among several companies raising prices while increasing profits by millions of dollars
In practice, a bag of chips at the grocery store now averages $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 rose 49 cents to $2.17.
But some companies that have raised prices are posting handsome profits, prompting complaints that consumers are being ripped off.
Kyle Herrig, president of the Accountable.Us advocacy group, told the New York Times, “Recent earnings calls have only reinforced the familiar and unwelcome theme that companies didn’t have to hike their prices as high for families in need.
“The calls tell us that companies have used inflation, the pandemic and supply chain challenges as an excuse to overstate their own costs and then consumers of nickels and cents.”
PepsiCo’s prices for drinks and chips rose 17 percent last quarter compared to the same period last year, the Times reported.
Runaway inflation has left millions of Americans stressed and worried about the future
And its profit for the third quarter of 2022 grew by 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 they were last year.
The company’s profit for the most recent quarter was $257.1 million, up 26 percent year-on-year.
The problem of food inflation was highlighted over Halloween weekend with figures showing the price of some sweets rose by almost half.
Amid cost pressures that experts say are turning people to junk food, individual candy prices are rising, with Mars’ Skittles up a whopping 42 percent and Starburst up 35 percent, according to Datasembly.
Crunch Bars and Butterfingers made more modest price increases of seven and six percent, respectively. Average candy bar costs are up 13 percent, according to the Labor Department.
Only Hershey seems to have been immune to the creepy prices, as she hasn’t changed the cost of a candy bar since inflation began.
According to the National Retail Foundation, Americans will spend a total of $10.6 billion on Halloween candy in 2022. For comparison: Americans spent $10.1 billion last year.
Soaring food inflation was highlighted by the date showing the rising cost of candy on Halloween
Core inflation, which excludes volatile food and energy prices, rose 6.6% in September
Sen. Bernie Sanders of Vermont criticized the price hikes, tweeting last week, “While the cost of Halloween candy has increased more than 13.1% since last September, the Mars candy bar family has grown 44% richer and increased during the pandemic her wealth by $32.6 billion.
“The Mars family is now worth $106.8 billion. Do you know what scary is? corporate greed.’
Half of Americans say runaway inflation and the high cost of living are taking a toll on their health as millions turn to alcohol, junk food and quit smoking as worries about electric and gas bills mount this winter.
A recent forecast by Bloomberg says there is a 100% chance that the US economy will plunge into recession within the next year. Previously, economists had only estimated a recession probability of 60 percent.
Year-over-year data for August shows rising gas costs and the highest inflation in 40 years
“As we move further into the cost-of-living crisis, the impact is starting to show,” said Matt Booth, a researcher on the survey.
“It’s affecting everything from our personal health to planning our grocery shopping to savings to save money.”
Nearly three-quarters of Americans said they were concerned about rising costs for electricity and gas, the survey found, as consumers faced sharp hikes in the price of heating oil, propane and other fuels in the coming colder months.
Almost two-thirds of respondents said the energy crisis and rising cost of living are affecting their spending plans.