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Epic Economist, 1/20/25
"Walmart CEO Sounds Alarm On
Grocery Prices In 2025 As Hard Times Begin"
"If you're seeing your grocery bill going higher every time you shop at Walmart - you're not going crazy! Even though official inflation numbers are cooling down, food inflation is still going up, and the company’s CEO Doung McMillon is sounding the alarm about price hikes this year due to the combination of lower agricultural production in the U.S., and import tariffs that are expected to go into effect over the next few weeks.
Walmart's top boss has lifted the lid on what Americans should expect for grocery prices in the first quarter of 2025 - and, as you can imagine, it's not good news. McMillon forecasted that food inflation - at record highs even after four years of frequent increases - will likely get worse this year, and he said he's 'disappointed' with current prices, pointing to eggs and dairy as key contributors to the latest increases.
During the Morgan Stanley Global Consumer and Retail Conference, McMillon stated that stubbornly high inflation will not go away any time in the foreseeable future, and cautioned investors to temper their optimism going into the new year. “I don’t know what the whole year is going to look like. I hope and I think it could be better as these commodities adjust - at least some of them,” he said. “I’m disappointed to see food inflation start to tick back up. It’s primarily driven by eggs and what’s happening with dairy right now,” the CEO added.
“But it’s not just those categories — there’s pressure on cocoa and other inputs. So, we look at pricing compared to last week, last month, last year, but we also look at it compared to pre-pandemic. And if you look at all of the food, prices are a lot higher than they were before the pandemic, which is not what the customers want and not what we want.”
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