INDIANAPOLIS — According to the USDA, food prices are rising more slowly this year compared to last.
Rising food prices are something the government agency is investigating, and they are getting help from the Attorney Generals from 31 states.
The new partnership will assist state Attorney Generals in tackling anti-competitive market structures in agriculture and related industries that the Biden administration believes are raising prices and limiting choices for consumers and producers.
For Indianapolis residents like Ken Avidor, grocery prices are impacting his bottom line.
Avidor says every time he goes to the store, he rides his bike and loads his groceries in a trailer that he pulls behind. He says filling that trailer up is pricier than ever before.
“It’s been very expensive, and it’s getting more [expensive.] It happens incrementally,” Avidor said. “It’s a lot more expensive than it was a year ago.”
He isn’t alone in feeling the pinch. Shoppers WRTV spoke with at Kroger downtown agree.
"A year ago, you would buy groceries and spend $100. You'd have six, eight, 10 bags,” Wesley Ferrell, who lives in Indianapolis, said. “Now, you're lucky if you've got three."
While inflation is a big factor in increased food prices, the USDA is investigating to see if there might be more at play.
Under the direction of Agriculture Secretary Tom Vilsack, the USDA, in partnership with Attorney Generals across the country, will investigate corporate consolation.
The USDA says they will be looking into the potential negative effects on the U.S. economy.
“What we’ve seen is a long trend towards concentration in agriculture and food markets,” Joseph Balagtas, Agricultural Economics Professor at Purdue University, said. “By concentration I mean we have fewer larger firms operating various stages of food and agricultural supply chains."
Balagtas says whether or not those concentrations are causing price increases is complicated. He says he's doubtful since these were happening before the inflation we are seeing today.
Balagtas says in some cases they can lead to lower prices for consumers and farmers. However, if competition elimination is happening, it could save consumers and farmers money if the government addresses companies that are doing so.
“If concentration is driven by anti-competitive behavior where firms are trying to eliminate their competitors, then consumers and farmers can be harmed, "Balagtas said.
While most of the shoppers we spoke with think this investigation is a good thing, others feel it likely won't help much due to other factors.
"The supply chain, the pandemic, all those other factors,” Ferrell said. “So I don't think it's going to help much."
For more information about the effort, click here.
