The price of some of America’s favorite foods, including burgers and hot dogs, are set to soar — as annual inflation hit a 30-year high in October, the feds announced Wednesday.
Major US food companies, including Tyson Foods, Conagra and Kraft Heinz, are reportedly preparing to hike prices on some of their meat products to offset higher supplier costs, according to supplier letters to wholesale customers that were obtained by CNN.
Ball Park hot dogs and burgers, State Fair corn dogs, Jimmy Dean frozen breakfast items, Hillshire Farm sausage and lunch meat, and Hebrew National and Oscar Mayer hot dogs will all be affected, the broadcaster said.
“All the packaged meat suppliers are coming to the price increase party,” a leader of one regional distributor to stores said, according to CNN, speaking on the condition of anonymity to protect their company’s relationship with suppliers.
Grocery store prices have been rising for months, especially when it comes to various meats. But more expensive items like steak, pork chops and bacon have borne the brunt of those price hikes so far.
But now, suppliers of the cheapest meat items are beginning to raise prices due to higher costs for packaging, labor, transportation and other services, CNN reported.
Those increases will likely force supermarkets and other retailers to follow, passing the costs on to customers.
Last month, Tyson Foods sent a letter to at least two regional distributors telling them to expect prices on Ball Park, Hillshire Farm, Jimmy Dean, State Fair and all deli meats to rise anywhere from 5 percent to 10.2 percent starting in January, according to CNN, who obtained the memo.
“We continue to face accelerating levels of extraordinary inflation,” Tyson wrote.
“The sustained duration and significant impact of the inflation necessitates additional pricing action.”
A Tyson spokesperson told CNN that the company is “carefully managing these inflationary pressures through pricing actions and efforts to reduce costs.”
Chicago-based Conagra similarly told distributors this week that it’s planning to hike prices in January on various Hebrew National hot dog packages anywhere from 10.9 percent to 12.6 percent, the report said.
And last week, Kraft Heinz told retailers that it’s planning to raise prices on Oscar Mayer beef and various hot dogs by around 8 percent in January, according to CNN.
The company has already increased prices by an average of 5 percent on four out of five of its products “to help offset the escalating inflation that the entire industry is facing,” a spokesperson told CNN.
But the company added that it’s rolling out more options and value-sized offerings of brands like Lunchables, according to the outlet.
It’s the latest example of cost pressures building throughout the US economy, which has been slammed this year by record-setting inflation.
Consumer prices jumped 6.2 percent in October from a year ago, the Labor Department announced Wednesday. That’s the sharpest increase since November 1990 and comes as companies grapple with a snarled supply chain and a nationwide labor shortage.
Items that were hit particularly hard by the pandemic, like airline tickets and hotel rooms, have seen the biggest rise in prices as demand comes roaring back.
Used and new car prices have been hit particularly hard by inflation, to o, due to a global shortage of semiconductor chips, a key input in cars.
According to a Morning Consult/Politico poll released last month, sixty-two percent of Americans said President Biden is somewhat or very responsible for increasing inflation, which hits the middle and working-class more than the wealthy, who have their money protected in stocks.
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