But Krogers promise hinges on a successful merger with Albertsons
of ConsumerAffairs
Grocery prices are top of mind these days as many struggle to control their food budget. Its not that prices are still surging. Three years of inflation have pushed prices up a lot higher than they were before the pandemic.
Two grocery chains have pledged to bring prices down. During an earnings call this week, Walmart CEO Doug McMillon said negotiations with suppliers have resulted in some lower prices in the food aisles. But he said prices should go down even more.
We have less upward pressure, but there are some that are still talking about cost increases, and were fighting back on that aggressively because we think prices need to come down, McMillon said.
The Walmart CEO said there is one sector of the grocery store where prices have remained stubbornly high. Prices of dry groceries and processed food items have not gone down and some prices are still rising.
Are prices stabilizing?
In the July ConsumerAffairs Datasembly Shopping Cart Index, which tracks the prices of 25 commonly purchased grocery items, the prices of ketchup, mayonnaise and salted butter rose month-over-month and year-over-year, while the prices of many items went down or remained the same.
The July Consumer Price Index (CPI), released thisweek, also shows a mixed food price picture. The index for food at home, which reflects the price of groceries, rose 0.1% during the month. Three of the six major grocery store food group indexes increased over the month while the other three indexes declined in July.
Prices of meats, poultry, fish, and eggs rose 0.7% in July as the index for eggs increased 5.5%. The fruits and vegetables index rose 0.8% over the month and the nonalcoholic beverages index increased 0.5%.
Kroger is also pledging to do something about high grocery prices, but theres a big if. A company spokesperson told Bloomberg that the supermarket chain would lower prices by $1 billion if its mega-merger with Albertsons is allowed to go forward.
The proposed union faces a number of antitrust lawsuits, including one by the state of Colorado that has brought the deal to a halt until after the trial. The chains pledge to cut food prices is meant to address critics claims that the merger would reduce grocery competition and lead to higher prices.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-16 14:32:19
