FMI statement on misconceptions regarding food price inflation and industry practices

Arlington, VA – FMI – Food Industry Association President and CEO Leslie G. Sarasin issued the following statement regarding reports of policy proposals that would ban “price gouging” nationwide:

“Inflation has caused prices to rise for many consumer goods – from gasoline to clothing. But the Consumer Price Index (CPI) figures for 2024 show that the pace of inflation continues to moderate year-on-year, and food prices are actually a bright spot in the data. In fact, yesterday's July CPI showed inflation for food at home to be 1.1% year-on-year, below the 2.9% rise in headline inflation.

“Profit margins in the grocery retail industry are and have always been extremely low – just 1.6% last year. The entire grocery industry works tirelessly – despite fierce competition – to fight inflation and keep prices as low as possible to meet shoppers' needs. However, the grocery industry continues to face significant economic headwinds – including rising labor costs, volatile energy prices, an increase in climate change-related severe weather, supply chain challenges and an unprecedented level of regulatory burden – that increase the cost of producing food and delivering it to store shelves.

“It is both inaccurate and irresponsible to confuse an illegal activity like price gouging – a defined legal term that involves specific violations of trade law – with inflation, which is a broad, macroeconomic measure of the increase in consumer prices over time due to cost pressures in the supply chain. In the context of food, inflation affects how far the dollar stretches when purchasing groceries.

“Americans should be able to trust that the food industry will have 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 does business – feeding American families.

“When discussing food prices, it is imperative that our conversations are based on reality and data, not rhetoric.”

About FMI

As the food industry association, FMI works with and on behalf of the entire industry to promote a safer, healthier and more efficient food supply chain for consumers. FMI brings together a wide range of members across the value chain – from retailers who sell to consumers, to producers who supply food and other products, to a wide range of companies that provide essential services – to strengthen the industry's collective work. www.FMI.org