In an op-ed for the New York Times, Sen. Bob Casey (D-Pa.) called out what he described as “greedflation,” arguing that big corporations are using rising inflation as cover to raise prices beyond the rate of inflation.
Casey noted that recent reports show families are paying higher prices for everyday goods due to “shrinkflation”, which occurs when a company reduces the size of a product without lowering the price. He also cited his own shrinkflation report, which found that one-tenth of recent price increases for snacks and toilet paper were attributable to companies reducing the number of cookies in a bag or sheets on a roll.
The senator said that big corporations are using “economic turmoil as cover to raise prices beyond the rate of inflation.”
He argued that the recent string of price increases has impacted families across the country, noting that some are having to struggle to afford basic necessities. He called on the federal government to take action to address the issue and protect consumers from price gouging.
Casey said that one possible solution is to empower the Federal Trade Commission to investigate and punish corporate price gouging, including in grocery stories. He also called for new legislation to address the issue and empower the Federal Trade Commission to investigate and punish corporate price gouging, including in grocery stories.
Story source: www.casey.senate.gov