Why Grocery Prices Never Go Back Down | MONEY UNMASKED
Money Unmasked
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Why Grocery Prices Never Go Back Down | MONEY UNMASKED
14 просмотров · 6 дней назад
Money Unmasked
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14 просмотров · 6 дней назад
A grocery cart that cost $100 in 2019 costs about $133 today. Inflation has cooled, so why haven’t prices come back down? In this video, MONEY UNMASKED explains the three hidden mechanisms that push grocery prices up and keep them there: shrinkflation, pricing algorithms, and corporate margins.
You’ll learn why slower inflation doesn’t mean falling prices, and why the 11.4 percent grocery price jump of 2022 never reversed.
We break down three mechanisms:
Shrinkflation: Retail scanner research shows that product downsizing is far more common than upsizing, and shoppers notice a price change much more than a size change.
Pricing algorithms: Electronic shelf labels and personalized pricing tools make prices easier to change. Regulators, including the FTC and several states, are now scrutinizing how they are used.
Margins and concentration: FTC and Federal Reserve research points to wider retail markups after the pandemic in an increasingly concentrated grocery industry. We also cover the counterarguments, including thin net margins and supply shocks.
This video is for educational purposes only and is not financial advice. Figures are rounded and based on public data from the Bureau of Labor Statistics, USDA, FTC, and GAO.
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