Here's why grocers are really raising prices

foxbusiness.com:

National Grocers Association President Greg Ferrara explains factors contributing to the rise in grocery prices in an interview with FOX Business Network's Edward Lawrence.

The grocery store industry is facing accusations levied by some politicians that stores are engaging in price gouging as consumers continue to grapple with stubborn inflation, but the leader of a trade group representing independent grocers is pushing back on those claims.

FOX Business Network's Edward Lawrence spoke with Greg Ferrara, president and CEO of the National Grocers Association, who explained that grocers' net profit margins are being squeezed by higher labor costs and inflationary pressures that ripple through the supply chain.

«Our members are not publicly traded companies, but in 2023, our members realized a net profit margin of 1.4%, so they are making very little margin at a time when they're dealing with inflationary pressures or dealing with increased labor costs,» Ferrara said.

He explained that «labor is a huge component» of high prices hitting consumers and added: «We've seen significant wage increases since before the pandemic, but we've also seen enormous increases in commodity prices and while those have come down a bit, they are absolutely elevated.»

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Greg Ferrara of the National Grocers Association pushed back on allegations that grocery stores are engaging in price gouging. (Scott Olson/Getty Images / Getty Images)

«These are tough times for supermarkets right now. They are doing everything they can to keep prices low, to make sure they're having aggressive sales to help consumers because they know people in the marketplace are pinched, and they're feeling