Advertisement

Drudge Retort: The Other Side of the News
Sunday, August 18, 2024

Kamala Harris made clear she agrees with those economists who have found that some corporations, rather than merely raising prices in response to a spike in demand relative to existing supply, have taken advantage of market conditions to pad their profits with higher prices. There are likewise a number of Republican lawmakers who have advocated for federal intervention to stop price gouging ...

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

In an apparent reference to Harris' admittedly vague plan to forbid "price gouging" on food, Donald Trump wrote on Truth Social, "Kamala will implement SOVIET Style Price Controls," one of several policies he claimed would make inflation "100 times WORSE."

The Republican National Committee joined in, sharing the New York Post's Saturday headline "Kamunism" on X with the caption, "Comrade Kamala."

Harris singled out two industries, beef and pharmaceuticals, that have attracted scrutiny from plenty of Republicans.

In December, Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) introduced legislation restricting how pharmacy benefit managers (PBMs), a middleman industry that negotiates prescription drug prices for insurance plans, can operate.

Grassley is a longtime critic of PBMs' and pharmaceutical companies' pricing practices, going so far as to accuse some companies of price gouging. "As a leading advocate for lowering drug prices in the U.S. Senate, I've hauled Big Pharma and pharmacy benefit manager executives before Congress, led a two-year bipartisan investigation into insulin price-gouging, and advanced bipartisan reforms to lower the cost of insulin and many other prescription drugs," Grassley wrote in an October 2022 op-ed in the Iowa City Press-Citizen.

He sounds a whole lot like Harris, who said on Friday, "I'll lower the cost of insulin and prescription drugs for everyone with your support, not only our seniors and demand transparency from the middlemen who operate between Big Pharma and the insurance companies, who use opaque practices to raise your drug prices and profit off your need for medicine."

There are likewise a number of Republican lawmakers who have advocated for federal intervention to stop price gouging in the beef industry. Grassley joined Sens. Mike Rounds (R-S.D.) and Jon Tester (D-Mont.) in February 2023 to reintroduce the Meat Packing Special Investigator Act, which would create a new special investigator in the Department of Agriculture to crack down on meatpacking giants' anticompetitive practices.

The trio argued that concentration in the meatpacking industry, which is now dominated by just four companies, has enabled corporations to at once squeeze independent cattle ranchers with lower purchase prices, and then charge consumers higher and higher prices in supermarkets.

Alaska Sens. Lisa Murkowski and Dan Sullivan, both Republicans, wrote to the Federal Trade Commission in September to encourage strict scrutiny of a potential merger between the supermarket conglomerates Kroger and Albertsons.

"The track record of grocery consolidation in our state does not bode well for Alaskans' food security, affordability, and our dedicated workforce," the pair wrote.

Donald Trump - "I'm entitled to personally attack Kamala Harris" - is the gift that keeps on giving. He's fully ignorant that 34 states already have anti-price gouging laws on their books, including those "communist" havens of Alabama, Florida, Mississippi, and Ohio. In fact, 42 states have emergency regulations or anti-price gouging laws to protect American consumers in times of federally declared emergencies from unduly raising their prices beyond certain points.
en.wikipedia.org

So just who is the anti-American here, the one asking for a more robust federal protections, or the person claiming that standing up for consumers during times of emergency is somehow a road too far towards collectivism?

#1 | Posted by tonyroma at 2024-08-18 08:39 AM | Reply

And just in case some have forgotten, the main reason for supply chain issues was the fact the world was undergoing a global pandemic called Covid-19, which Trump himself declared as a national emergency in 2020 - which should have triggered the existent state law protections that obviously went unpursued.

#2 | Posted by tonyroma at 2024-08-18 08:48 AM | Reply | Newsworthy 1

"Kamala will implement SOVIET Style Price Controls," one of several policies he claimed would make inflation "100 times WORSE." The Republican National Committee joined in, sharing the New York Post's Saturday headline "Kamunism" on X with the caption, "Comrade Kamala."

So they are just going to rebrand all the stuff they were going to smear Bernie with? That's lazy.

#3 | Posted by REDIAL at 2024-08-18 12:48 PM | Reply | Newsworthy 2

So they are just going to rebrand all the stuff they were going to smear Bernie with? That's lazy.

It's also stupid. All Trump is going to do is cause American to be educated about what they didn't know: During emergencies, like the Covid Pandemic, states already have laws to keep companies from doing exactly what they did - price gouge consumers solely because they could. Yet state attorney generals didn't do one single thing to hold these companies accountable as inflation wreaked havoc on household budgets even though laws were on the books.

So Harris is asking for federal laws towards the same ends - protecting consumers from being exploited during specified emergencies, and Trump is dumbly calling it communism. All Americans know that inflation began to spike while the pandemic was still raging, but how many know that their state should have held guilty companies responsible for the very pricing practices they admitted openly in earnings calls and investor reports?

#4 | Posted by tonyroma at 2024-08-18 04:35 PM | Reply | Newsworthy 1

@#4 ... So Harris is asking for federal laws towards the same ends - protecting consumers from being exploited during specified emergencies, and Trump is dumbly calling it communism. ...

Well, yeah.

Fmr Pres Trump is all about transferring more of the Country's wealth to the wealthy upper class (e.g., corporate owners), while VP Harris seems to be looking out for the middle and lower class of the Country.



#5 | Posted by LampLighter at 2024-08-18 07:31 PM | Reply

Damn that Libral Chuck (Back-up Coup Speaker) Grassley!!

#6 | Posted by Corky at 2024-08-18 08:23 PM | Reply

@#6

Context is helpful.

thx.

#7 | Posted by LampLighter at 2024-08-18 08:32 PM | Reply

"Americans spent 25% more on food at the start of 2024 compared to 2020. During that time, the country's ten largest grocery and restaurant brands saw their profits skyrocket. Then they took their fattened profits and collectively spent $77 billion on stock buybacks and dividends to enrich executives and wealthy shareholders. They used inflation as cover to get rich while we paid the tab. Kudos to VP Harris for focusing on corporate price-gouging. This is a big deal." - Robert Reich

#greedflation

#8 | Posted by Gal_Tuesday at 2024-08-18 09:16 PM | Reply | Newsworthy 1


@#6 ... "Americans spent 25% more on food at the start of 2024 compared to 2020. During that time, the country's ten largest grocery and restaurant brands saw their profits skyrocket. Then they took their fattened profits and collectively spent $77 billion on stock buybacks and dividends to enrich executives and wealthy shareholders. ...

Got a link?

That quote is not in the cited article.

Here's what I found...
x.com

#9 | Posted by LampLighter at 2024-08-18 09:51 PM | Reply

OK, I found this...

Food Retailers Are Still Lying About Inflation and Profits
jacobin.com

... American consumers are paying more and more at both grocery stores and fast-food chains. These retailers are disingenuously blaming the price hikes on inflation while they put their massive profits toward stock buybacks and fat dividends. ...

Yeah, OK.

But I want details....

#10 | Posted by LampLighter at 2024-08-18 09:55 PM | Reply

There's this...

Exclusive: Democrats Urge Biden to Investigate Grocery Store Price-Fixing (May 2024)
time.com

... The letter, shared exclusively with TIME, comes after a report from the Federal Trade Commission (FTC) found that major grocery chains seemed to take advantage of supply chain disruptions during the pandemic to hike up prices to increase their profits ...


#11 | Posted by LampLighter at 2024-08-18 10:00 PM | Reply

And this...

FTC Releases Report on Grocery Supply Chain Disruptions (March 2024)
www.ftc.gov

... Pandemic-induced disruptions disproportionally impacted smaller firms, as larger companies sought to protect market share, power ...

The Federal Trade Commission today issued a report on the causes behind grocery supply chain disruptions resulting from the COVID-19 pandemic. The report revealed that large market participants accelerated and distorted the negative effects associated with supply chain disruptions.

The FTC's report also examined how supply chain disruptions affected competition among retailers, wholesalers, and producers, as well as the impacts on consumers and businesses. The report found that consumers felt the negative effects of supply chain disruptions in the form of sky rocketing prices for groceries and product shortages for essentials, like toilet paper. ...



#12 | Posted by LampLighter at 2024-08-18 10:03 PM | Reply

@#8

So, thank-you for bringing this issue to the fore.


#13 | Posted by LampLighter at 2024-08-18 10:05 PM | Reply

Not sure if this is what you are looking for, but I found this:

Big Food, Big Profits, Big Lies

While blaming inflation for rising prices, the country's biggest food and restaurant companies are raking in billions and showering shareholders with payouts.

portside.org

#14 | Posted by Gal_Tuesday at 2024-08-18 10:05 PM | Reply

@#14 ... Not sure if this is what you are looking for ...

As always, I was just looking for information.

Thx for the reply.

It seems to confirm what I found in my exploration.

So, now, it does not seem to be just Big Oil that pulled in excessive profits off the backs of Americans, but also the major supermarket chains.

All to apparently enrich their wealthy shareholders.



#15 | Posted by LampLighter at 2024-08-18 10:10 PM | Reply

Details,

*From April to September 2023, corporate profits drove 53% of inflation. Comparatively, over the 40 years prior to the pandemic, profits drove just 11% of price growth.

*While prices for consumers have risen by 3.4% over the past year, input costs for producers have risen by just 1%. For many commodities and services, producers' prices have actually decreased. Corporations have failed to pass these savings to consumers.

*Corporate profits as a share of national income have skyrocketed by 29% since the start of the pandemic. While our economy has returned to or surpassed its pre-pandemic levels on many indicators, workers' share of corporate income has still not recovered.

Groundwork was one of the first to expose the link between corporate price gouging and inflation. Starting in the summer of 2021, Groundwork began digging through recent corporate earnings call transcripts across multiple industries experiencing record-high prices. This research revealed CEOs openly bragging to their shareholders about their ability to raise prices beyond their rising costs to increase profits. To justify these moves, CEOs hid behind the cover of supply chain issues and the economic turmoil caused by the pandemic.

Over two years later, corporations continue to be explicit about how they have and will continue to do so even as inflation comes down and supply chains normalize. The report highlights recent quotes from companies, including Procter & Gamble, Kimberly Clark, General Mills, and PepsiCo.

Read the full report here.

with receipts.

#16 | Posted by tonyroma at 2024-08-18 10:10 PM | Reply

@#16

A link to the article that the PDF of #16 seems to reference...

Inflation Revelation: How Outsized Corporate Profits Drive Rising Costs (January 2024)
groundworkcollaborative.org

... Overview

Inflation has come down significantly from its peak over the past year, yet prices remain high for American consumers. As supply chain snarls have receded and the economy has stabilized, businesses continue to pad their bottom lines, rather than passing these savings on to consumers. ...



#17 | Posted by LampLighter at 2024-08-18 10:16 PM | Reply

"A new report claims "resounding evidence" shows that high corporate profits are a main driver of ongoing inflation, and companies continue to keep prices high even as their inflationary costs drop."
www.theguardian.com

"As Hostess's C.E.O. told shareholders last quarter, "When all prices go up, it helps." The head of research for the bank Barclay's echoed this. "The longer inflation lasts and the more widespread it is, the more air cover it gives companies to raise prices," he told Bloomberg. More than half of retailers admitted as much when surveyed."
www.nytimes.com

#18 | Posted by YAV at 2024-08-18 10:18 PM | Reply

#17 - yep. That's what's in the Guardian link I posted.

#19 | Posted by YAV at 2024-08-18 10:19 PM | Reply

OK, when I visit the About page of GroundWork, I am greeted with...
groundworkcollaborative.org

... Who We Are

Groundwork's analytical and strategic approach allows us to drive narrative and policy change with credibility, expertise, and impact.

Watch this video to learn more about Groundwork. ...


So I have to suffer through a 3-minute video to learn something that I could read in a few seconds were it in text?

What are they trying to hide?


#20 | Posted by LampLighter at 2024-08-18 10:21 PM | Reply

Gee,I'm Sooo Surprised that corporations used the Pandemic as an excuse to jack prices and pad their bottom lines.

Corporations exist only to gouge and pollute without accountability to anyone.

They are one of the worst legal innovations in Human History.

Here in the USA they have effectively captured all three branches of government and this is nothing new.

What is new is how open and shameless it has become and how voiceless and impotent regular citizens aree to do anything about it privately or at the ballot box.

#21 | Posted by Effeteposer at 2024-08-18 10:24 PM | Reply

@#19 ... That's what's in the Guardian link I posted. ...

Yeah, that Guardian link points to GroundWork as its source.

From the Guardian article...

... The report, compiled by the progressive Groundwork Collaborative thinktank ...

So I continue to ask, who is (are) this GroundWork? And what is the basis of their assertions?



#22 | Posted by LampLighter at 2024-08-18 10:25 PM | Reply

@#21 ... Gee,I'm Sooo Surprised that corporations used the Pandemic as an excuse to jack prices and pad their bottom lines. ...

Really?


#23 | Posted by LampLighter at 2024-08-18 10:35 PM | Reply

This is the piece of the price gouging issue the GOP is trying to ignore and keep hidden from the general public:

Laws against price gouging

In the United States, state laws against price gouging have been held as constitutional[3] at the state level as a valid exercise of the police power to preserve order during an emergency, and may be combined with anti-hoarding measures.

As of March 2021, Proskauer Rose counted 42 states have emergency regulations or price-gouging statutes.[4][needs update] Price-gouging is often defined in terms of the three criteria listed below:[5]

1. Period of emergency: The majority of laws apply only to price shifts during a declared state of emergency or disaster.

2. Necessary items: Most laws apply exclusively to items essential to survival, such as food, water, and housing.

3. Price ceilings: Laws limit the maximum price that can be charged for given goods.

Some states that do not have a specific statute addressing price gouging, can nevertheless apply the law as an "unfair" or "deceptive practice" under a consumer protection act.[6]

What the law prohibits

State laws vary on what price increases are permitted during a declared disaster. California has set a 10 percent ceiling on price increases.[12] Florida prohibits a price increase "that grossly exceeds the average price" of that same item in the 30 days leading up to the emergency declaration.[13] Some state laws do not define what constitutes a "gross disparity," making it difficult for either affected residents or law enforcement to determine when price gouging has occurred, while others merely limit vendors and landlords to price increases of less than 25 percent.[14] Laws often include exceptions for price increases that can be justified in terms of the increased cost of supply, transportation, demand, or storage.[15]

en.wikipedia.org

Seems to me it should be impossible - as gaslighting Trump and his echoes are doing - to claim that valid US laws deemed constitutional somehow can be construed as communism or whatever inflammatory tripe Harris' call for stronger federal laws is being portrayed as.

Perhaps bringing attention to our already existent state laws, and the fact many corporations have already admitted statutory violations of price gouging in their own earnings reports, might spur some sitting AGs to actually pursue legal action where it's appropriate. But this totality of facts certainly does the GOP no good if the public is made aware of the self-admitted truth corporations were only too happy to openly share with investors and Wall Street.

#24 | Posted by tonyroma at 2024-08-18 10:37 PM | Reply | Newsworthy 1

So I continue to ask, who is (are) this GroundWork? And what is the basis of their assertions?

The "basis" of their assertions are contained in every single linked document with the exact information being reported by them.

Go to this link: endcorporateprofiteering.org and read all the corporate reports (call and earnings) where they openly state in clear language how their revenues have been enhanced by raising prices higher than absorbing increases in production costs because of the pandemic.

#25 | Posted by tonyroma at 2024-08-18 10:44 PM | Reply

@#25 ... The "basis" of their assertions are contained in every single linked document with the exact information being reported by them. ...

Thank-you for that.

But I will still say that GroundWork needs to do better than hiding behind a video on their About page.


Yeah, OK, I will readily admit, I'm an old fart, but, still.

An About page should be one that gushes about what the website is "about," without making the page visitor sitting thorough a long rambling video.

imo, GroundWork failed in that basic area.

For example...

About ExtremeTech
www.extremetech.com

...

ExtremeTech is the world's top destination for news and analysis of emerging science and technology trends, software, hardware, and gadgets. We're a thriving community of users and experts seeking to answer the most pressing questions. We dig deep into the subterranean depths of technological knowledge, looking for the most vital, behind-the-scenes information that motivates enthusiasts. If you need to know how the chips hum, the galaxies swirl, and the robots move, you're in the right place.

How do we know? Because we're enthusiasts ourselves. We're a one-stop shop for serious technological needs. Our writers search for the real story behind what's out there today and what will be tomorrow. We not only look at products and technological developments but also explore the concepts that drive them.

You, our dynamic community, fill in all the gaps by chatting about anything and everything.

See our editorial masthead to learn more about the writers and how to contact us.

Be sure to read our editorial guidelines. ...



Yeah, that's what I want to see when I visit an About page, not some deflection to a boring video.

#26 | Posted by LampLighter at 2024-08-18 11:39 PM | Reply

#26

Completely irrelevant to the topic and subject matter at hand, precisely because the information being presented comes from verbatim quotations published by the companies themselves along with statistics taken from official government releases.

I could care less what an "About" tab says about the compilers of information unless there is some open and public dispute over the veracity of the information they present.

Everything else is tangential BS, imo and not worthy of discussion within the context of the topic. If you want to bitch about Groundworks, then start a thread about it. Please stop distracting from the topics with your extraneous meanderings, wholly unimportant to almost anyone but for you. Try keeping a journal instead.

#27 | Posted by tonyroma at 2024-08-19 06:49 AM | Reply

#26 pt. 2

Perhaps had you used Google instead of complaining about having to watch a video (I do sympathize with you in this area. I too, prefer to read information than see it in video form) you would have found answers for your questions without taking the entire thread down a rabbit hole.

Groundwork Collaborative (GWC) is an American 501(c)(3) non-profit think tank and progressive advocacy group based in Washington, D.C., that, according to its website, works to "change economic policy and narratives to build public power, curb private power, and create an economy that works for all of us."[1][2] The organization is best known for research, analysis, and media commentary on economic issues, such as inflation, student debt, housing, and the U.S. labor market.[3][4][5]

Groundwork has been described as a "left-leaning think tank" and a "nonprofit that is critical of corporate behavior" by the Washington Post, and a "progressive economic policy group" in the New York Times.[6][7][8]

*History

Groundwork is led by Lindsay Owens, an economic sociologist who served as a senior economic policy advisor to Senator Elizabeth Warren and deputy chief of staff and legislative director to former Representative Keith Ellison and Progressive Caucus Chair Pramila Jayapal.[9] She was recently named to the Washingtonian's "Most Influential People Shaping Policy" list, noting that "Owens is known in media circles for her skills in communicating ways to better understand inflation and corporate profiteering."[10] The organization was founded in 2018 by Michael Linden.[11] Linden also served as the executive associate director at the Office of Management and Budget from May 2022 - June 2023.[12][13]

In January 2021, Lindsay Owens became interim executive director and was named the organization's executive director in June 2021.[14]

Previous notable Groundwork employees include Janelle Jones, former chief economist at the Department of Labor, and Angela Hanks, former acting assistant secretary for Employment and Training Administration at the Department of Labor.[15][16][17]

#28 | Posted by tonyroma at 2024-08-19 07:09 AM | Reply

*Corporate profiteering

Groundwork offers research on "corporate profiteering" which the organization claims is a contributor to inflation sometimes called "greedflation". The organization maintains a database that tracks corporate earnings calls which news reports say "has described the CEOs as not just price gouging, but also 'bragging' about their ability to raise prices faster than costs."[18][19] The organization has referenced companies including Chevron, H.B. Fuller, 3M and Colgate-Palmolive in the media, alleging its CEOs are "using the cover of inflation to jack up prices on consumers."[20] In November 2022, Groundwork and the progressive consumer rights advocacy group Public Citizen released a report that found that large corporations opposed to anti-price gouging legislation spent $751 million on federal lobbying since 2020, nine times more than what was spent by supporters of the legislation.[21]

The organization released a report in January 2024 arguing that it had "resounding evidence" that high corporate profits were responsible for 53% of inflation in the United States during the second and third quarters of 2023.[25] Economist Isabella Weber called this phenomenon where firms do not lower prices for consumers after input prices fall a form of implicit collusion, allowing companies to reap windfall profits.[25] This followed a similar December 2023 paper published by the UK-based Institute for Public Policy Research and Common Wealth think tanks that stated that corporate profiteering played an important role in the inflation spike of 2022. Corporate profits surged while wages failed to keep pace with rising prices, resulting in the working class suffering the largest decline in disposable and discretionary income since World War II.[26]

The organization also reported in February 2024, that 30% of the rise in grocery prices in particularly vulnerable sectors like beef, chicken, fruits, vegetables and snacks and urged the Biden administration to finalize rules to address the concentration in the meatpacking industry.[27]

en.wikipedia.org(GWC)%20is%20an,for%20all%20of%20us.%22%20The

#29 | Posted by tonyroma at 2024-08-19 07:10 AM | Reply

Kamala putting on a master class in getting GOPPERS to endorse inflation and price gouging.

#30 | Posted by Nixon at 2024-08-19 07:35 AM | Reply

Price gouging is perpetual. Congress should have hearings on this all the time. They have more important things to do, though, like displaying revenge porn posters of (convicted felon) Hunter Biden.

#31 | Posted by anton at 2024-08-19 04:58 PM | Reply

Kamala Harris allies say plan to ban price gouging' has been misconstrued

Harris's allies, however, are arguing both publicly and privately that her plans have been taken out of context, and that the idea is a targeted expansion of existing state powers rather than new government "price controls" that would transform the U.S. economy.

"Most of the criticism is from well-intentioned but poorly informed people who are interpreting the elevation of state laws to the federal level as price determination, but part of it is just malicious attacks from the other side trying to characterize her as a socialist," said Ben Harris, who served as a senior official in the Treasury Department under President Joe Biden.

www.washingtonpost.com

Don't think I've ever seen a thread about a hot button topic go almost 24 hours without a post.

And as soon as this thread falls off, I guarantee our resident Trumpers will ignore all the detailed, annotated, information presented above. Just like water being wet. Book it.

#32 | Posted by tonyroma at 2024-08-20 03:33 PM | Reply

The Dem panic plandemic disrupted the supply chain. That's why Biden Harris had to print money and create the next crisis. Inflation.

#33 | Posted by visitor_ at 2024-08-20 03:59 PM | Reply

Info on why beef is currently so expensive and it is gouging:
'Beef is fetching record prices and that's great for ranchers, maybe not so great for burger lovers. The culprit pushing prices up? Supply and demand. The supply of cows is low. So low, Zumstein says it can actually be hard to source cattle for the auctions. "I have so many guys right now that are looking to buy cows," he said. "And this year, I can't find cows for these guys."
The number of beef cattle in the US is the lowest it's been in years. Part of this dates back to the pandemic, when safety issues at meat packing plants and supply chain snags meant ranchers couldn't sell their cows. At the same time, the cost of the hay to feed the cattle went through the roof. "If you had a cow that came in and looked at you kind of crazy in the pen, you were getting rid of her because you couldn't afford to feed her," Zumstein said. The result: Herds got a lot smaller.
When supply chains started to normalize and demand for beef spiked, ranchers started growing their herds again, but it takes years before a cow is old enough to sell for beef, so increasing the supply of beef takes time.'

www.marketplace.org

#34 | Posted by MSgt at 2024-08-20 04:37 PM | Reply

#33 | Posted by visitor_

"I purposefully down played the pandemic." -- COVI-Donald

Damn you dumb

Swallow it.

#35 | Posted by rstybeach11 at 2024-08-20 04:38 PM | Reply

Gouging not at grocery stores either:

/Conventional grocery stores have a profit margin of about 2.2%, making them one of the least profitable industries in the US. But they make their money by selling in large volume & multiple locations. However, stores in natural, organic, and gourmet niches tend to see bottom-line profit margins of closer to 5-10%'

thegrocerystoreguy.com

#36 | Posted by MSgt at 2024-08-20 04:40 PM | Reply

Stick a sock in it Msgt. Your underwhelming "statistics" have already been laid bare by actual pandemic numbers:

Americans spent 25% more on food at the start of 2024 compared to 2020. During that time, the country's ten largest grocery and restaurant brands saw their profits skyrocket. Then they took their fattened profits and collectively spent $77 billion on stock buybacks and dividends to enrich executives and wealthy shareholders. They used inflation as cover to get rich while we paid the tab. Kudos to VP Harris for focusing on corporate price-gouging. This is a big deal." - Robert Reich

#37 | Posted by tonyroma at 2024-08-20 04:58 PM | Reply

May 5, 2024

During the last federal election on Nov. 3, 2020, food inflation was running at just 3.9% annually. Fast forward to March 2024, and the latest data shows food prices have risen a whopping 25.8% since then. To put that in perspective, a basket of groceries that cost $100 in November 2020 would now set you back $125.80. That's an increase of nearly $26 for the exact same food items.

Food price inflation first started accelerating in early 2021, jumping from just 1.4% in January of that year to 3.5% by March. It kept climbing month after month, finally peaking at 11.4% in August 2022 as soaring costs for grain, meat and dairy fed through to grocery stores.

finance.yahoo.com

Since you ignored the detailed information quoting from producers' own earnings reports detailing their price hiking strategy, I'll repeat a snippet.
Thanks to price increases, Tyson Foods more than offset costs of inflation and reported a record operating profit margin for the company. "The average price charged per customer for beef was up 32 per cent year on year, pork 13 per cent and chicken 20 per cent. While wages, along with meat and logistics prices have risen substantially, Tyson's pricing power more than made up for those higher production costs. The company recorded an operating profit margin of 11.3 per cent - only the fourth time since 1990 that this figure has been in the double digits, according to data from S&P Global." (Financial Times, 2/7/2022)

PepsiCo's Frito-Lay North America division saw revenue and profit increases of roughly 20% in the past quarter "primarily driven by effective net pricing." "FLNA 12 Weeks: Net revenue grew 20%, primarily driven by effective net pricing. Unit volume declined 2%, primarily reflecting a double-digit decline in our Sabra joint venture products and a mid-single-digit decline in variety packs, partially offset by low-single-digit growth in trademark Doritos and Cheetos and double-digit growth in trademark Popcorners. Operating profit increased 17%, primarily reflecting the effective net pricing and productivity savings. These impacts were partially offset by certain operating cost increases, including strategic initiatives, and a 20-percentage-point impact of higher commodity costs, primarily cooking oil, potatoes and corn." (PepsiCo, Form 10-Q, 10/11/2022)

endcorporateprofiteering.org

#38 | Posted by tonyroma at 2024-08-20 05:18 PM | Reply

When profits and prices - among the same commodities - are spiking simultaneously, there *might* be some gouging going on. Even a simple MAGAt should be able to see this. Let's have some hearings.

#39 | Posted by anton at 2024-08-20 05:35 PM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2024 World Readable

Drudge Retort