American Action Forum President Doug Holtz-Eakin takes a look at fast food prices that exceed wages and the Fed’s approach to controlling inflation.
Federal officials are investigating the difference between price cuts at grocery chains and the lack of affordable food for American families.
Federal Trade Commission (FTC) Chairwoman Lina Khan said Thursday that she will ask the commission to investigate the tactics used by major grocery chains to “raise prices and squeeze profits from everyday Americans.” at the purchase counter.”
His comments came during the first public meeting of the Justice Department’s Strike Force on unfair and illegal pricing, which was established in March by the Biden administration to “strengthen the agencies’ efforts to End and stop illegal business behavior that drives up prices for American families through anti-competitive, unfair, deceptive or fraudulent business practices.
THE PRICE IN THE US IS THE HIGHEST AND THE BEST IN THESE CITIES
Kahn acknowledged that “the discount on grocery prices has been zero so far this year,” with many popular items like whole grains and pasta and potatoes costing less than they did. last year. However, while the pace of food inflation has slowed in recent months, grocery prices are still rising more than 21% since the start of 2021, according to FOX Business figures.
Despite the low inflation, food prices are still uncomfortably high, according to the latest government data. (Mostafa Bassim/Anadolu via Getty Images/Getty Images)
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Between 2020-2021, prices were largely driven by changes in consumption patterns and disruptions related to the supply chain of COVID, according to the United States Department of Agriculture (USDA).
In 2022, prices rose at their fastest pace since 1979 due in part to an outbreak of parasitic diseases that affected egg and poultry prices and the conflict in Ukraine. which compounded other economic pressures across the board such as higher energy costs, the USDA reported.
Federal Trade Commission Chairwoman Lina Khan said the agency will use all of its resources to crack down on any ineffective tactics that major grocery chains may use to raise prices on basic necessities. (Paola Chapdelaine for The Washington Post via Getty Images/Getty Images)
While grocery prices rose during the pandemic due to higher costs and supply disruptions, “in the year since then, costs have come down and supply chains have improved,” Khan said, and he added that many things are still costing too much, allowing the big grocery chains to pull out. with very high profits.
Because of that, he argued, “it’s still not clear that Americans are getting the full competitive, affordable prices they deserve.”
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“One of the biggest concerns I keep hearing about is the high prices of groceries every week. People are hoarding the food they need to feed their families,” Khan said. “And often, people feel that their high income will cover the basics like meat or bread or eggs.”
Khan said the commission will use all its resources to bring down any tactics that companies may use to raise the prices of basic necessities, adding that this is “an important task that will help to ensure that Americans can be freed from economic pressure and criticism in the marketplace.”
The FTC did not name specific companies, although major players in the industry include Walmart, Amazon’s Whole Foods, Kroger and Albertsons.
FOX Marketing reached out to Walmart, Whole Foods, Kroger and Albertsons for comment.
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