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Grocery prices are up because of good old-fashioned corporate price gouging.
Here are three reasons why.
Energy Cost Reductions
Energy impacts almost every step of the food supply process.
These steps can result in reduced energy prices by increasing supply and decreasing reliance on foreign sources of energy.
Deregulation
Restrictions are implemented to protect public health and ensure companies operate ethically.
However, regulatory compliance is a big cost factor passed on to consumers.
Congress could relax certain regulations to slash prices, but it would cause other concerns.
At times,Republican policymakerswill propose deregulation to reduce these compliance costs.
While this could lower food costs, there are also disadvantages.
Deregulation is not a silver bullet; the devil is always in the details, Chasin noted.
One must go so far as to exchange lowered costs for businesses withsafety and sustainability.
Such actions can involve increasing highway systems, upgrading port capabilities to mitigate congestion and improving the movement process.
In addition, Trumps tariff proposals will also cause a hike in food prices, per Sjofors.
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