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President Biden Wants To Control Grocery Prices

Biden Administration Calls on Grocery Chains to Lower Prices

The Biden administration is turning its attention to grocery chains, urging them to reduce prices on essential goods amid concerns about rising inflation. Jared Bernstein, chair of Biden’s Council of Economic Advisers, emphasized the need for companies to pass on savings to consumers, particularly in sectors where profit margins have remained high.

While specific companies were not named, grocery giants like Walmart, Kroger, and Albertsons have seen gross profit margins exceeding 20%, similar to pre-pandemic levels. The administration’s analysis of Census data indicates a significant rise in retailers’ revenues compared to costs, suggesting increased mark-ups on products.

President Biden has been vocal about addressing price gouging across various industries, including pharmaceuticals and hospitality. Ahead of his re-election bid in November, Biden is seeking to alleviate concerns about high costs, despite positive economic indicators such as strong job growth.

Consumer confidence is gradually improving, driven by factors like wage growth outpacing inflation. The administration aims to lower costs in several key areas, including groceries, appliances, and transportation, to ease financial burdens on Americans.

While the price of certain items, like eggs, may seem insignificant in the consumer price index, they hold significant weight in the public’s perception. The recent decline in the United Nations food agency’s price index reflects a potential opportunity for retailers to adjust prices accordingly.

Amidst discussions of mergers and acquisitions in the grocery industry, there are concerns about potential price increases. Kroger and Albertsons’ proposed merger, for instance, is under scrutiny for its potential impact on consumer prices.

In response to the administration’s call, Kroger expressed agreement with Biden’s stance and highlighted plans to invest in price reductions as part of the merger. However, the National Grocers Association emphasized the need for stricter antitrust enforcement, alleging that larger retailers have pressured suppliers to raise prices for smaller competitors.

As the Biden administration continues to address inflation concerns, the spotlight remains on grocery chains to prioritize affordability for consumers amidst economic recovery efforts.

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Ruben Jay
Ruben Jay
Ruben Jay is an American broadcaster, media blogger, and podcast host. Currently, Ruben is the President of MultiMediaMouth.com and the executive producer and host of the popular podcasts You’re My Best Friend and ON AIR with Ruben Jay, exclusively on MultiMediaMouth.com. Follow Ruben on Instagram, Twitter, and Tiktok @TheRubenJay.

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