Rising food prices are putting a strain on consumer budgets. In an exclusive interview with Yahoo Finance's Jennifer Schonberger, U.S. Treasury Secretary Janet Yellen shared her views on rising food prices and agricultural investment.
Yellen said higher food prices were due to rising costs, including higher labor costs, but noted that “profit margins may be increasing somewhat.”
However, Yellen does not see the need for government intervention in the agricultural sector, saying, “I find it difficult to agree that we should be involved in subsidizing agriculture.”
Read the full Yahoo Finance interview with U.S. Treasury Secretary Janet Yellen here.
This post was written by Angel Smith
Video Transcript
Have you been to the grocery store recently?
It's every week.
I was surprised at the price.
If you just look at shipping costs, they're going down.
Global food prices also fell.
But food prices remain high.
I know that this is not as high as last year, but it is still a 20% increase compared to pre-COVID levels.
So, should the U.S. invest in agriculture to increase the nation's food supply?
So yes, there may be some margin growth, but I think it's primarily reflecting the increased costs, including labor costs, that the companies, the grocery companies have experienced.
Um, I met with a group of CEOs today, including the CEO of Target, and they explained and announced that they understand that families are struggling with expenses like food, and so they have implemented price cuts on bread, milk, diapers, and other basic purchases that are household necessities.
And I think that's something to be celebrated.
I think that sort of thing is helpful.
Hmm, but I don't agree that we should be involved in agriculture and subsidizing agriculture.
