FTC to launch inquiry into high grocery prices

The U.S. Federal Trade Commission will probe why grocery prices remain high even as costs for retailers fall, Chair Lina Khan said on Thursday, a key theme for the Biden-Harris administration as it heads towards the presidential election.

Once the FTC votes to authorize the study, major grocery chains would be ordered to provide information on their costs and prices on common products. Khan made the announcement at a public meeting with Justice Department officials on pricing practices.

The biggest U.S. industry players include Walmart (NYSE:WMT); club grocery chain Costco Wholesale Corp (NASDAQ:COST); Amazon.com (NASDAQ:AMZN), which operates Whole Foods; and big box retailer Target.

Food prices have risen 25% between 2019 and 2023, faster than other consumer goods and services, U.S. Department of Agriculture statistics showed. An FTC study showed food prices for U.S. consumers rose 11% between 2021 and 2022, while profits for food retailers went up more than 6%.

https://www.supermarketnews.com/news/ftc-launch-inquiry-high-grocery-prices