Inflation, grocery prices top concern | Wilnesh News

Pricey Big Mac meals and concerns about soaring grocery store prices have put grocery chains and consumer goods companies in the crosshairs of politicians.

WalmartMcDonald’s and hook up These are just a few of the companies embroiled in the high-inflation debate in the 2024 election.

Sens. Elizabeth Warren, D-Mass., and Bob Casey, D-Pennsylvania, sent a letter to Kroger CEO Rodney McMullen on Monday. It has questioned the grocer’s rollout of electronic shelf labels, arguing the technology could make it easier to raise prices on high-demand items. The letter also noted that the supermarket chain could become even bigger, depending on whether it completes its $24.6 billion acquisition of rival Albertsons.

Democrats — especially those like Casey trying to win in competitive swing states — are trying to capitalize on business dissatisfaction with inflation. The move follows years of Republicans trying to blame rising prices on President Joe Biden, who has also criticized businesses for what he calls greedy tactics.

For example, An . (The source of the data is unclear, and McDonald’s denies its average price has increased that much.)

During the current presidential campaign, Democratic Vice President Kamala Harris and Republican former President Donald Trump have both pledged to combat persistent inflation while blaming different causes.

Harris told the rally she would crack down on “price gouging” by companies. Trump criticized the Biden administration’s policies at his own rallies and said he would end the “inflation nightmare.”

The fact that both parties have made fighting inflation a key platform of their campaigns shows how important the cost of food, gas and housing is to consumers across income levels, regions and political parties. The criticism could also increase pressure on companies to prove they can lower prices or provide value.

Data from the U.S. Bureau of Labor Statistics show that inflation has fallen from multi-decade highs, with groceries increasing about 1.1% annually through June. But since June 2019, food at home has increased by 26.2%, while food away from home (which mainly includes restaurant meals) has increased by 27.2% during the same period.

Americans ranked inflation and prices as their most important issues in the latest Economist/YouGov poll, which included a representative sample of about 1,600 adult US citizens. This comes ahead of other topics that have emerged on the campaign trail, including immigration, climate change and health care.

Promising to tackle higher daily costs is a safe campaign issue at a contentious time, Kate Lamberton, a marketing professor at the University of Pennsylvania’s Wharton School of Business, said.

“There’s nothing we can agree on, right? But we can agree on this,” she said.

Making the case for how a policy will affect voters’ lives is often tricky. The same cannot be said for the cost of necessities.

“There’s a very beautiful, simple cause-and-effect relationship between voting for someone and believing that my grocery bill will go down,” she said.

A Walmart spokesperson said the retailer will not change its “everyday low prices” policy and pointed to some back-to-school deals, including basket of food Children’s lunches are provided for two weeks at approximately $2 per day.

Kroger did not disclose how it will use electronic shelf labels, but the grocer said in a statement that keeping prices low “is fundamental to our strategy.”

“Lower prices attract more loyal customers and help us grow our business,” the company said.

To fend off criticism, companies must better explain why they are increasing costs or renegotiate with suppliers, said Wharton’s Lumberton. They also must do a better job of telling their stories in advertising, she said.

For example, as families prepare for the first day of school, Amazon and Walmart advertise school supplies starting at 25 cents. Amazon has Run TV ads A cheeky message encouraging parents to spend less on their children.

Over the next two weeks, many of the nation’s largest retailers, including Walmart, Home Depot and Target, will report earnings. They may also defend their prices and emphasize the way they create value — following the lead of some restaurants.

For example, regarding ChipotleDuring an earnings call in late July, Chief Executive Brian Niccol denied that the chain had asked workers to fill out burrito bowls less often, but said the company would reemphasize generosity. Like McDonald’s, Chipotle has been the target of social media ire — but the focus is on portion size rather than price.