FMI Statement on Misconceptions about Food Price Inflation and Industry Practices
Aug 15, 2024 Arlington, VA – Today, FMI – The Food Industry Association President BB #:162464, and CEO Leslie G. Sarasin issued the following statement regarding reports about policy proposals that would create a federal ban on “price gouging:”
“Inflation has caused the price of many consumer goods – from gasoline to apparel – to increase. But 2024 Consumer Price Index (CPI) numbers reveal that the pace of year-over-year inflation continues to moderate, and food prices actually represent a bright spot in the data. In fact, yesterday’s July CPI placed year-over-year food-at-home inflation at 1.1%, which remains below the 2.9% increase in overall inflation.
“Food retailers’ profit margins are, and always have been, extremely tight – just 1.6% last year. The entire food industry works tirelessly – amidst fierce competition – to address inflation and keep prices as low as possible to meet the needs of shoppers. However, the food industry continues to face significant economic headwinds – including increases in labor costs, volatile energy prices, an uptick in climate change-related severe weather events, supply chain challenges, and an unprecedented level of regulatory burden – that increase the costs to produce food and get it to store shelves.
“It is both inaccurate and irresponsible to conflate an illegal activity like price gouging – a defined legal term in which specific violations of trade practices law occur – with inflation, which is a broad, macroeconomic measure of increases in consumer prices over time due to supply chain cost pressures. In the context of food, inflation impacts how far the dollar goes when buying groceries.
“Americans should feel confident that the food industry has zero tolerance for deceptive practices like price gouging, an illegal activity that has no place in our stores and is inconsistent with the way the food industry conducts its business of feeding American families.
“When discussing food prices, it is imperative that our conversations remain grounded in reality and data, rather than rhetoric.”
About FMI
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org
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A STATEMENT FROM NGA BB #:163424 PRESIDENT & CEO GREG FERRARA ON THE PROPOSED PRICE GOUGING BAN FOR GROCERY STORES
August 16, 2024 Washington, D.C. – “The proposal calling for a ban on grocery price gouging is a solution in search of a problem.
Our independent grocers, already operating on extremely thin margins, are hurting from the same inflationary pressure points as their customers. Labor, rent, swipe fees, utilities; you name it, the price has increased. But what’s really hurting our local, independent grocers, is the lack of fair competition with big box retailers, who leverage their influence in ways that your independent grocer down the street can’t, leading to increased prices for everyone else.
We’re hoping the next Administration (and the current one) will look closely at anticompetitive behaviors, including price discrimination, that are increasing prices for independent grocers and the community members they serve.
We firmly believe that rather than proposing new legislation far-off in the future, the Government should be enforcing the Robinson-Patman Act, a key antitrust law that already exists, but has been ignored for decades as big chains unfairly wield their influence.
If Washington is serious about helping lower prices for consumers, it can help in three important ways: lower skyrocketing swipe fees, rein in excessive and burdensome regulations, and enforce antitrust laws like the Robinson-Patman Act that enhance price competition amongst retailers, regardless of size or location.”
About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
Contact: NGA Communications Office
202-938-2584
communications@nationalgrocers.org
