Vice President Kamala Harris called for a nationwide ban on corporate price gouging on food and groceries in a speech in Raleigh, North Carolina today to lower the cost of living for families across the country.
“My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris said.
In her speech, Harris mentioned that while prices rose during the pandemic due to supply chain failures, supply chains have since improved, but prices are still too high. And while households are struggling to make ends meet due to increased food prices, major food companies are recording their highest profits in two decades and many are not passing those savings on to consumers.
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“Look, the bills are piling up. Groceries, rent, gas, school clothes, prescription drugs. After all of that, there’s not much left at the end of the month for many families,” Harris said. “If elected president, I will make it my top priority to reduce costs and increase economic security for all Americans.”
A price gouging ban would prevent companies from unfairly exploiting consumers and, ideally, would lower food prices. But there is disagreement among economists about whether a nationwide price gouging ban would actually lead to lower food prices. While some blame corporate greed as the main driver of inflation, others believe that price gouging is not, in fact, a primary catalyst of inflation.
How much have food prices increased since the last election?
Inflation has caused food prices to rise significantly in recent years. Although prices are no longer rising as much as they have in the past two years (up just 1.1% last year), food costs remain a major concern for many households. Nearly three-quarters of U.S. adults are stressed by everyday expenses, with groceries the most frustrating item for households, according to the latest USA TODAY Blueprint Credit Cards Survey.
Compared to four years ago, food prices have increased by about 20%, due to a mix of supply and demand pressures caused by the pandemic and other global events. reports the New York TimesAnd a Study by GO Banking Rates found that food prices have increased by 25.8% since the last federal election on November 3, 2020, through March 2024. That means $100 worth of groceries in 2020 would cost $125.80 today for the same items. Here’s how much the average price of everyday staples has also increased over that period.
- Eggs: 54%
- Milk: 36%
- Cheese and butter: 30%
- Cereals and baked goods: 28%
- Beef: 20%
- Chicken: 25%
- Fresh fruits and vegetables: 21%
