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John Katsimetidis believes inflation at the gas pump and grocery aisle won’t go away anytime soon.

“Inflation is here to stay,” he said on Granthshala Business’ “Warney & Company.”

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Consumer prices up 5.3% annually in August

Katsimetidis, who runs the Gristeads grocery chain in New York and also has an oil business, said manufacturers are “panic” as food, energy and transportation costs rise.

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His remarks came as the Labor Department said on 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 increased by 0.4%.

Grocery prices hiked: Kroger

Catsimatidis also pointed to a shortage of truck drivers, adding to their business problems.

“Our New York store is lacking because Coca-Cola, they can’t get truckers to deliver it to New York City,” he told host Stuart Varney. “And that’s a serious problem.”

Catsimatidis’ remarks contradict the Federal Reserve, which has firmly held its belief that inflation is “transient” and that price pressures will ease as a solution to supply-chain disruptions caused by COVID-19.

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Catsimatidis argued that the higher transportation costs would be “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? That’s not going to happen.”

Catsimatidis said that if the labor shortage improves, transportation costs could come down, especially if the country stops “giving unemployment checks”.

“I don’t see a fall in prices in the near future and crude oil prices are not going down,” he said.

Granthshala Business’ Jonathan Garber contributed to this article.