Can Trump Put the Brakes on Rising Grocery Prices?

Since President Joe Biden took office, food prices have climbed more than 25%, sparking widespread consumer discontent. President-elect Donald Trump, who frequently criticized rising grocery costs during his campaign, now faces the challenge of addressing this issue. DAMON HIGGINS / PALM BEACH POST / USA TODAY NETWORK / USA TODAY NETWORK via Imagn Images

Prof. Michael Faulkender, who teaches finance at the University of Maryland's Robert H. Smith School of Business, expressed optimism to ABC News about potential reductions in consumer prices, stating "Prices on different items absolutely could come down." Erik Scheel / Pexels

Despite the recent slowdown in food inflation to about 2%, the overall increase remains significant. Economists generally agree that prices typically do not decrease across the board unless the economy slows or enters a recession, which could bring hardship. Helena Lopes / Pexels

However, Trump could implement policies aimed at stabilizing or reducing grocery prices. One potential strategy involves boosting oil production, a move Trump frequently advocated during his campaign with the slogan "Drill, baby, drill." Increased oil production could lower transportation costs, which account for a significant portion of food prices.

On the other hand, increasing oil production could exacerbate climate change due to higher carbon emissions, a point raised by Luis Cabral, an economics professor at New York University, in an interview with ABC News. Allison Robbert/Pool via Imagn Images

Another approach is to strengthen antitrust enforcement to combat market concentration. Large corporations' market power can lead to higher prices. "Whenever there are fewer players in an industry, prices tend to be higher," notes Cabral. The Federal Trade Commission (FTC) has already taken steps to prevent mergers like the one between Kroger and Albertsons, which could reduce competition in the supermarket sector. Phillip Pessar / Wikimedia

Lastly, Trump could consider implementing a federal ban on price gouging, a practice that allows companies to sharply increase prices during shortages. While some economists doubt the efficacy of such a ban, others argue it could prevent extreme price hikes during emergencies. For example, egg prices have surged 30% over the past year due to an avian flu outbreak, underscoring the need for measures to stabilize prices. Jakub Kapusnak / Unsplash

As Trump's transition team prepares to take office, it remains to be seen which approach the new administration will take. The team has stated that Trump intends to fulfill the commitments he made during the campaign, but has not specifically addressed the issue of grocery prices. Mandi Wright / USA TODAY NETWORK via Imagn Images