3 Reasons Groceries Will Be Cheaper in 2025 With Republicans Now in Control of Congress

Groceries still take up a large chunk of Americans’ wallets, and consumers are fed up with price gouging.

When shopping online prices According to new data, it decreased by 0.1% in October. Adobe Digital Price Index (DPI), shoppers are still feeling the financial burden of putting food on the table, a deciding factor for many voters in presidential elections. exit polls.

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The reasons why prices remain high vary Disruptions in chain supplies due to COVID-19 to global conflicts and corporate greed according to politicians.

“Grocery prices have skyrocketed during the pandemic and, in many cases, have continued to rise even after the pandemic is over,” said Sen. Elizabeth Warren, D-Mass. Senate hearing. “Grocery prices have increased due to old-fashioned corporate price gouging. “And because there are so few companies that control every level of the food chain, they can put pressure on consumers on prices.”

With Republicans controlling Congress next year, inflation-weary Americans hope to see a drop in food prices, according to financial expert Brian Chasin, CFO. Stove New Jersey.

Here are three reasons why.

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Energy Cost Reductions

Energy affects nearly every step of the food supply process. From the fuel farmers use to run their equipment to transportation costs, energy plays a significant role in food prices.

When energy prices fall, food prices also fall because operating expenses for grocery companies and distributors decrease.

According to Chasin, “The top policy priority with Republicans in charge of Congress may be efforts to increase U.S. energy production, including lifting drilling restrictions, pipelines, or opening up new areas for natural gas extraction.” “These steps could lead to a decrease in energy prices by increasing supply and reducing dependence on foreign sources of energy.

“This is important because lower diesel prices mean lower costs in transporting produce from the farm to the distribution centre, ultimately lowering the price paid at the till. Lower energy costs for agricultural activities, irrigation, cooling and processing etc. also contribute directly to costs of goods (COGs) ) is transforming.”

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liberalization

Restrictions are applied to protect public health and to ensure that companies operate in accordance with ethical rules. However, regulatory compliance is a major cost factor that is passed on to consumers.

Congress could loosen some regulations to lower prices, but that could raise other concerns.

“Sometimes Republican policymakers this would recommend deregulation to reduce compliance costs. For example, easing restrictions on the use of pesticides or genetically modified crops could help farmers increase production while lowering production costs,” Chasin said. “Likewise, easing transportation restrictions such as trucker hour limits or weight limits could ease distribution barriers and reduce distributor expenses.”

While this can reduce food costs, it also has its drawbacks.

“Deregulation is not a magic wand; The devil is always in the details,” Chasin noted. “One has to go so far as to trade off lower costs for businesses. security and sustainability.

“Inevitably, it may come back to bite us, but creating efficiencies will reduce cost burdens for companies and ultimately reduce cost burdens on consumers.”

Supply Chain Improvements

The global lockdown during the pandemic has exposed some vulnerabilities in the food supply chain, causing widespread problems on an unprecedented scale. Labor shortages, transportation disruptions, and increased pressure on farmers and distributors were some of the problems that led to shortages on shelves and increased food prices.

“Perhaps with a Republican Congress he could also frame issues related to infrastructure investments or workforce reform, as well as policies that encourage private sector turnover,” Chasin said.

“Such actions may include increasing highway systems, upgrading port capabilities to reduce traffic congestion, and improving the movement process.”

Why Could Food Prices Increase Further?

While there are ways for Congress to lower grocery prices, President-elect Donald Trump’s policies could also increase costs.

Trump has been vocal about his plans to deport immigrants living in the US illegally; This will cause food prices to rise. According to SjoforsFounder of The Price Whisperer

.

“Deporting immigrants living in the U.S. illegally will create a shortage of agricultural workers, leading to increased farming costs and possibly even shortages of some foods because they cannot be harvested without the people being deported,” he explained.

Additionally, according to Sjofors, Trump’s tariff proposals will also cause an increase in food prices.

“The planned tariffs will become a tax on American consumers and prices will increase overall, increasing the rate of inflation,” he said. “Rising inflation will increase interest rates, which will increase the cost to farmers and the entire supply chain, causing food prices to rise.”

In conclusion

Americans now want relief from inflated food prices, but that’s unlikely to happen with Trump in the White House, according to Sjofors.

“Tariffs will also increase the prices of many imported equipment and spare parts used by farmers and the supply chain, resulting in higher costs and prices.”

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