Elizabeth Warren, senior United States senator from Massachusetts. (File photo by AFP)
S Senator Elizabeth Warren (D-Mass.) has criticized major American retailers for increasing food prices amid the coronavirus pandemic in the country, causing further economic hardships for the people.
Warren put the blame on the leaders of American supermarket chains for the sharp rise of food prices after the onset of the pandemic in the country.
She accused major US retailers of cashing in on others misfortune and profiting despite the pandemic.
In a letter addressed to the leadership of some US retailers, namely, Kroger, Albertsons and Publix, she said that the grocery store chains are profiting off of struggling American families during the pandemic.
"While many Americans faced the loss of jobs, homes, and loved ones during the COVID-19 pandemic, grocery companies like yours saw immense gains through record sales and profits," Warren wrote.
"Your company, and the other major grocers who reaped the benefits of a turbulent 2020, appear to be passing costs onto consumers to preserve your pandemic gains, and even taking advantage of inflation to add greater burdens," she said.
The senator added that these retailer stores "continued to earn massive profits while pushing grocery cost increases onto consumers" in 2021.
Warren blasted the stores leadership for giving priority to their top executives and investors during these troubled times for the masses.
"Your companies had a choice: they could have retained lower prices for consumers and properly protected and compensated their workers, or granted massive payouts to top executives and investors," Warren said. "It is disappointing that you chose not to put your customers and workers first."
Warrens letter to the retailers in the US comes after inflation reached the highest rate seen in the United States in the past several decades.
Analysts believe the impact of COVID-19 measures imposed by the government decreased the production of goods and services, resulting in the present supply-chain disruption and partially leading to price hikes.
"The result of that imbalance between supply and demand eliminated all the inventory and eliminated all the grease that allows the wheels of commerce to work smoothly," Steve Ricchiuto, chief US economist at Mizuho Securities said.
Consumer prices in November rose to 6.8 percent, marking the highest annual inflation rate recorded since 1982.
Prices for food were up 6.1 percent for the year, including 6.4 percent for food from grocery stores and 5.8 percent for food at restaurants.
Food prices rose at a faster average rate since the onset of the pandemic than they did in decades before, according to econofact.org.
It said food prices have increased an average of 3.6% for food bought from grocery stores for at-home consumption and 3.9% for food away-from-home since April 2020 on a monthly year-over-year basis.
LINK: https://www.ansarpress.com/english/24979
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