Inflation is a major issue in this presidential campaign, and Vice President Kamala Harris is looking to counter Republican attacks with a plan to take on what she calls price gouging at the grocery store.
Though inflation is slowing, consumers are still spending about 11% of their income on food, according to the U.S. Department of Agriculture — the most in 30 years.
The department predicts at-home food prices will rise 1% this year, down from the 5% increase last year.
Vice President Kamala Harris is blaming corporate greed for higher food prices.
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According to the Wall Street Journal, big food manufacturers saw substantial increases in annual net profits between 2019 and 2023. Hershey is leading with a 62% jump in profits, Mondelez International is up by 28% and General Mills and Kraft Heinz are both up 48%.
Vice President Harris vowed Friday, “I will work to pass the first ever federal ban on price gouging on food.”
Harris is proposing new penalties for companies that she says exploit crises.
The National Grocers Association calls the plan a solution in search of a problem.
It says the real issue is unfair competition with big box retailers, and that independent grocers are challenged by the same inflationary pressures as their customers
Martha Lupai is the co-owner of A&M Marketplace in Nashville. She says, “We are not going to increase the price on our customers. So our profit margin is so small, so we’re just hoping that people will know our story, they will come. More customers will come and they will balance it out.”
Big food companies are trying to win consumers back with more discounts and increased investments in store brands.
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