This is very good news for those of us who are stressed out over the cost of food and other grocery-store necessities:
The Hill has the deets from FTC Chair Lina Khan:
Khan noted at a joint FTC and Department of Justice public meeting that the cost of groceries “skyrocketed during the pandemic, due in large part to the higher costs and supply chain disruptions.”
“But we also know that in the years since, costs have fallen, and supply chains have improved,” she said. “Many items though, are still too costly, and many large grocery chains are still raking in enormous profits. The FTC is determined to understand why. To make sure we can do so, I’ll be asking [the] commission to join me in launching an inquiry into grocery prices, to shed light on why it is that prices and profits remain so high, even as costs appear to have come down.”
In March, the FTC cited profit margins, i.e. greed, as a significant driver of costs. The Hill reported then:
Retail grocery revenues increased to more than 6 percent above costs in 2021 and more than 7 percent in 2023, “substantially higher” than their most recent high point of 5.6 percent in 2015. The FTC’s calculation controls for fixed and labor costs.
“This profit trend casts doubt on assertions that rising prices at the grocery store are simply moving in lockstep with retailers’ own rising costs,” the agency said, urging “further inquiry” by policymakers.
It’s a bit surprising this investigation hasn’t already happened. But that doesn’t make it any less welcome now.
