Price gouging from food industry keeps food prices up, watchdog group says

The latest consumer-price index report from the U.S . Labor Department shows while inflation continued to go down in January, more progress was held back by stubbornly high food prices burdening everyday families. Price hikes on food have been a greed-motivated choice by the food industry that brags to wealthy investors of increased profits and revenue, according to the citizen watchdog group Accountable.US.

“Big food industry CEOs who price-gouge families despite making supersized profits do not care that they’re spoiling progress on high inflation,” said Liz Zelnick, director of the Economic Security and Corporate Power Program at Accountable.US. “They don’t care that their unjustified prices leave many American families food insecure.”

The only thing the industry cares about is boosting profits to enrich a small group of wealthy investors, Zelnick said.

“It’s painfully clear the food industry has no intention of self-regulating their greed, which is why Congress must help the Biden administration lower costs by cracking down on this kind of gross profiteering,” she said.

Recent examples of food companies that price-gouged consumers while raking in higher profits:

• Walmart – The largest U.S. grocery chain controlling more than 25 percent of the domestic market – hiked prices on its “Great Value” food brands while seeing its net income climb by over 93.2 percent to more than $10.5 billion in the nine months ending October 31, 2023, as it rewarded its shareholders with more than $5.9 billion through a combination of share buybacks and cash dividends. 
• Kraft Heinz – The maker of the popular food brands Stove Top and Kraft Mac and Cheese – rewarded its shareholders with more than $1.4 billion in dividends as the food maker raked in more than $2 billion in profits in the first nine months of 2023, a huge 41 percent increase from 2022.
• PepsiCo – In the first three quarters of 2023, PepsiCo reported nearly $7.8 billion in profits amid price hikes.

So put the blame where it belongs, on price-gouging corporate leaders. More needs to be publicized this corporate wrongdoing and stop it.

Comments

[Rebecca Olkowski]

I'm glad I avoid shopping at Walmart, don't drink soft drinks, or eat fake cheese. LOL

[Rita]

It's terrible that these huge corporations are taking advantage of consumers. Then, the Biden administration gets the blame while they rake in huge profits.