As reported in June of 2021 when Shrinkflation which is a smaller amount of food and other items being sold at the same price was first noticed by the public there was a projection that prices would level as a supply chain are able to recover and meet with consumer demands. However, projections made by Economists may have been far off as prices are projected to increase even more by October. Fox News interviewed John Catsimatidis the owner and CEO of the New York City supermarket chain Gristedes. Catsimatidis predicted that by October there will be a 6% annualized rate of inflation stating that both food and oil prices are affecting his grocery store chain in both areas. The rising cost will ultimately have to be shared by the consumer as well.
Fox 8 in Ohio has also reported there as still supply chain issues causing an increase in prices. Stating that there has been a 2% increase this year because of the pandemic. Ashlee Thurmond, a grocery store employee reported seeing issues as well “Our most popular items have been harder to get in stock. We are hearing there are not enough people to pack the product and drivers to get out to us.” Thurmond also stated, “In other districts, I have heard that the amounts of items received based on popularity and sales, which means we had to get creative with stocking certain items.”
Grocery stores have done their best to try to avoid increasing prices but as most profit margins for grocery stores are 1-2% it will be impossible for grocery stores not to in order to stay afloat.
Shanda Gantt 