Feeling the Pinch at Checkout?
Kroger has Questions for
Food Suppliers About Rapidly Rising Prices

After two years of volatility in everything from rent to the price of gas, we’re all wondering when prices will stabilize.

One area where Americans have been feeling the pinch the most is the grocery budget.

In the face of rapidly rising prices, Kroger is clapping back at suppliers.

The grocery retailer is demanding answers about why costs continue to rise as supply chains seem to be recovering.

The Math isn’t Mathing

According to the Consumer Price Index, grocery prices rose an average of 7.9% in 2021 and are expected to increase another 3-4% by the end of 2022.

The effect of inflation on individual products is even higher, with some costing 15-20% more than they did just one year ago.

Retailers like Kroger aren’t seeing the increase in their bottom lines that they’d hope from higher prices, since the costs of goods is rising in tandem.

Kroger teases dropping brands if prices continue to rise

As they demand answers, Kroger is suggesting they’ll stop carrying some supplier’s products if prices aren’t reined in.

This move might seem surprising to consumers, but business is business and profit margins will diminish if increases in cost outpace what households are willing to pay for non-essential food items.

Wrapping Up

Have you noticed a significant change in your grocery budget since 2020. How are you handling increased prices?

Share your story in the comments.