Oil prices could cause double-digit inflation: Billionaire supermarket owner
Inflation could rise to 15% this spring, John Catsimatidis said
Gristedes and D'Agostino Foods Chairman and CEO John Catsimatidis discusses the impact of record-high oil prices on the overall economy.
Gristedes and D’Agostino Food Chairman and CEO John Catsimatidis on Monday warned inflation could increase to double digits by spring on the heels of oil hitting its highest level since 2008.
"If that price maintains $120, $130 on the barrel, then you’ll see double coupons," he told "Mornings with Maria" Monday. "Instead of 7.5% [consumer prices] you’ll see maybe 15% by April or May."
Catsimatidis predicted that this week’s Consumer Price Index will exceed 8% even before sky-high crude oil prices have been reflected, which he believes could also drive gas prices to $6 or $7 at the pump.
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The billionaire supermarket owner explained how high energy costs will continue to impact consumer pricing and said if Procter & Gamble raises their prices, he’ll be forced to hike prices on his store shelves as well.
People shop for groceries at a supermarket in Glendale, California January 12, 2022. (Photo by Robyn Beck / AFP) (Photo by ROBYN BECK/AFP via Getty Images)
But reclaiming energy independence in North America should be the Biden administration’s current focus, Catsimatidis stressed, since it could be the fix to lowering overall cost.
"The president has to sit down and bring back production to North America, and he has to say, ‘enough is enough,’" he said. "Forget about… OPEC and Russia and Venezuela."
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FILE PHOTO: Gas prices grow along with inflation as this sign at a gas station shows in San Diego, California, U.S. November, 9, 2021. REUTERS/Mike Blake/File Photo
Catsimatidis described crude oil prices alone as "insane," but as the world yanks its economic support from Russia, President Biden's intention to drill oil in Venezuela as an alternative adds another element of madness.
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"Venezuela is a subsidiary of Russia right now," he said. "It’s really dumb… The President of the United States should sit down with Canada, Mexico and ourselves and say, ‘North America, let’s make ourselves energy independent.’ I mean, that is the way the President of the United States should be doing it."