FTC Questions if Grocery Industry's High Profits Are Driving Inflation or Just Benefiting From It

• FTC report questions if high profits are causing inflation or just a result of it in grocery industry • Grocery retailers increased revenues to over 6% above costs in 2021, higher than 2015 peak • Economists argue pandemic led to "sellers' inflation" from firms with market power raising prices • Grocery sector consolidation gave retailers power to squeeze suppliers to protect profits • Even as supply issues fade, profits remain high, concerning FTC about lack of competition