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FTC launching investigation into consistently high grocery store prices
If you've noticed that your grocery bills are still staggeringly high, you're not alone. The federal government is also asking why consumers are still paying so much for basic necessities, even as the economy is improving.
WASHINGTON - If you've noticed that your grocery bills are still staggeringly high, you're not alone. The federal government is also asking why consumers are still paying so much for basic necessities, even as the economy is improving.
The Federal Trade Commission says it plans to launch an investigation to try to find out why prices remain high despite costs going down and inflation steadily declining.
"Prices are ridiculous for families," one shopper told FOX 5. And it’s something practically everyone agrees with.
"A couple of days ago I went to make shrimp alfredo for me and my husband and it came up to like $57. It’s never been like that ever before," another shopper said. "I think shrimp alone is like $12, $13 and then when you add all the other ingredients. It’s just out of this world. It’s too much."
The government says the inflation rate for groceries right now and for the last year for that matter has been about one percent and yet, prices at your neighborhood grocery store are still high — suspiciously high according to the Biden Administration.
"Many large grocery chains are still raking in enormous profits," FTC Chair Lina Khan said during a joint FTC and Department of Justice public meeting. "The FTC is determined to understand why."
The agency says it is opening a probe into these major supermarket companies to see if they are purposely inflating prices as their costs level off.
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"I’m not seeing the prices come down if inflation is coming down. Hopefully, we get a break with prices. I haven’t seen that yet," another shopper said. "I spent almost $40 for really not much just now. I know that they need to make money too. I think something's up. There should be some correction lower in my opinion."
Grocery store chains have said the high costs of labor and supply chain disruptions during the pandemic are to blame for what you're paying. The government says the cost of your groceries is still up more than 20 percent from the start of 2021.
The government says the price of poultry and eggs rose at their fastest pace in 2022 due in part to the avian flu and the war in Ukraine. High energy costs are also contributing to sticker shock on the aisles.
"Just like getting eggs, it’s like $5 and something," another shopper told FOX 5.
And some shoppers say one of the hardest parts is affording healthy, nutritious food for their families.
"I actually work at the food stamp office so I see it both ways. It’s just...you can’t really buy good quality food. So we tend to eat Oodles and Noodles and eating the bad things because you can’t afford it," she said.