Democratic lawmakers in Nashville call on AG to review food prices amid rising costs

NASHVILLE, Tenn. (WTVF) – As grocery bills continue to strain household budgets across Tennessee, state lawmakers are calling for a thorough investigation into possible price gouging in the agricultural market.

Despite a decline in some everyday expenses, food prices remain high, causing concern among both consumers and governments.

This month, State Senator Charlane Oliver and State Representative Aftyn Behn wrote a letter to Tennessee Attorney General Anthony Skrmetti urging him to join a bipartisan federal initiative aimed at combating price gouging and investigating anti-competitive practices in the food sector.

The objection by Senator Oliver and Representative Behn underscores the growing frustration among shoppers who have noticed significant price discrepancies.

In his response to the congressmen's letter, Attorney General Skrmetti indicated that he was hesitant to participate in the investigation until he was sure that it would actually benefit Tennessee consumers.

Rob Ikard, president of the Tennessee Grocers and Convenience Store Association, acknowledges the high prices but rejects the notion of widespread price gouging.

Ikard points out that profit margins in the grocery industry are extremely low. Last year, a profit margin of only 1.6% was reported. He emphasized the competitive nature of the grocery business.

“The grocery market is extremely competitive. If you want customers to come to your supermarket, you have to offer prices that can compete with the store around the corner,” he said.

In his reply, Skrmetti explained that, according to the US Department of Agriculture (USDA), recent increases in food prices were mainly due to factors such as inflation, bird flu and disruptions in grain production in Ukraine.

“There are some black sheep out there, but most price increases seem to be the result of either bad federal policy or bad luck,” Skrmetti added.

Ikard also cites increased costs for labor, energy, transportation and manufacturing as key reasons for the rise in food prices.

He stresses that despite rising operating costs, grocers are striving to make shopping as affordable as possible.

More than 30 attorneys general nationwide, including from states such as Wyoming and Arkansas, have joined the federal government's effort to investigate grocery pricing, underscoring widespread concern about the issue.

Do you have any further information about this story? You can email me at ([email protected]).