Food Inflation

In recent research, Yumin Hu, Luca Macedoni, and Mingzhi Xu explore how high income inequality can raise the costs of living. They compare grocery products around the U.S., finding that large retailers will increase the prices for their goods in places where income inequality is also high.

Grocers Kroger and Albertsons want to merge, which would make them the second biggest retail food chain and, according to them, enhance their ability to compete with Walmart and Costco and offer lower prices to consumers. Christine P. Bartholomew writes that the promises of more competition and lower prices for consumers are unlikely to manifest, and thus the Federal Trade Commission should block the deal.