Inflation 'here to stay': Billionaire supermarket owner
US Labor Department reports prices for food and energy increased in August
Inflation 'here to stay': Gristedes CEO John Catsimatidis
John Catsimatidis, the billionaire owner and CEO of New York City supermarket chain Gristedes, provides insight into rising consumer prices.
John Catsimatidis believes that inflation at the gas pump and in the grocery aisle isn’t going away anytime soon.
"Inflation is here to stay," he said on FOX Business' "Varney and Co."
CONSUMER PRICES RISE 5.3% ANNUALLY IN AUGUST
Catsimatidis, who runs the Gristedes grocery chain in New York and is also in the oil business, said manufacturers are "panicking" as food, energy and transportation costs go up.
His comments come as the Labor Department said Tuesday that the consumer price index rose 5.3% year over year last month, matching economists’ expectations.
Energy prices rose 2% last month, mostly due to a 2.8% increase in the gasoline index. Food prices were up 0.4%.
GROCERY PRICES HEADED HIGHER: KROGER
Gristedes CEO on higher prices for goods
John Catsimatidis, the billionaire owner and CEO of New York City supermarket chain Gristedes, weighed in on inflation and how it impacts his businesses.
Catsimatidis also pointed to the shortage of truck drivers adding to his business problems.
"We have shortages in our New York stores because Coca-Cola, they can't get truck drivers to deliver into New York City," he told host Stuart Varney. "And it's a serious problem."
Catsimatidis comments contradict The Federal Reserve, which has held firm in its belief that inflation is "transitory" and that price pressures will ease as supply-chain disruptions caused by COVID-19 are resolved.
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Catsimatidis argued higher transportation costs will be around "forever."
"Crude oil is $70 a barrel," he said. "Do you think the Saudis, the Russians are going to accept less than $70 a barrel? It's not going to happen."
Catsimatidis went on to say transportation costs could be lowered if labor shortages improve, especially if the country stops "giving out unemployment checks."
"I don't see prices going down in the near future and the price of crude oil is not going down," he added.
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FOX Business’ Jonathan Garber contributed to this article.