NASHVILLE, Tenn. (WTVF) — As grocery bills continue to strain household budgets across Tennessee, state legislators are calling for a thorough investigation into potential price gouging within the agriculture market.
Despite a decline in some everyday expenses grocery prices have remained high, prompting concern among consumers and state officials alike.
This month, State Senator Charlane Oliver and State Representative Aftyn Behn addressed a letter to Tennessee Attorney General Jonathan Skrmetti, urging him to join a bipartisan federal initiative aimed at combating price gouging and scrutinizing anti-competitive practices in the grocery sector.
Senator Oliver and Representative Behn's appeal highlights growing frustration among shoppers, who have noticed significant price discrepancies.
In response to the lawmakers' letter, Attorney General Skrmetti has indicated he is hesitant to commit to the investigation until he is assured it will effectively benefit Tennessee consumers.
Rob Ikard, president of the Tennessee Grocers and Convenience Store Association, acknowledges the high prices but dismisses the notion of widespread price gouging.
Ikard points out that grocery store profit margins are extremely tight, with a mere 1.6% profit margin reported last year. He emphasized the competitive nature of the grocery business.
“Grocery is extremely competitive, and if you want customers to come into your grocery store, you have to offer prices that are competitive with the store down the street,” he said.
In Skrmetti's letter response, he said according to the U.S. Department of Agriculture (USDA), recent grocery price hikes are primarily driven by factors such as inflation, bird flu, and disruptions in Ukraine's grain production.
"There are some bad actors out there, but most of the price increases appear to be the result of either bad federal policy or bad luck," Skrmetti’s added.
Ikard also cites increased costs in labor, energy, transportation, and manufacturing as significant contributors to rising grocery prices.
He insists that grocers are striving to make shopping as affordable as possible while facing these rising operational costs.
Nationwide, more than 30 Attorneys General, including those from states like Wyoming and Arkansas, have joined the federal effort to investigate grocery pricing practices, underscoring the widespread concern over the issue.
Do you have more information about this story? You can email me at (kelsey.gibbs@newschannel5.com).
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