Political Action Against Rising Food Prices in US and EU

As the US presidential campaign heats up, inflation, particularly food inflation, has emerged as a pivotal issue. Despite food inflation returning to a near-normal rate of 2.9% in July 2024, the average annual rate since June 2021 has been around 6%. Candidates are grappling with the implications of these figures, as voters express concern over rising food prices, which have been exacerbated by supply chain disruptions stemming from the COVID-19 pandemic and geopolitical tensions, notably following Russia's invasion of Ukraine. In Europe, similar inflationary pressures have sparked significant farmer protests, highlighting the opaque pricing mechanisms within the agri-food supply chain. In response, the European Commission has initiated measures to enhance price transparency and strengthen regulations governing unfair commercial practices. Experts warn that without clear pricing structures, the root causes of price fluctuations will remain obscured, perpetuating distrust among stakeholders in the food industry. The concentration of market power in the food sector is also a growing concern, with fewer than ten companies controlling half of food production in Europe. In the US, the Democratic Party's electoral manifesto calls for a review of mergers and acquisitions to foster competition within the food industry. This reflects a broader debate on how to balance consumer interests with the need to improve farmers' incomes and bargaining power. While US Vice President Kamala Harris emphasizes keeping consumer prices low, European leaders like President Emmanuel Macron advocate for policies that ensure fair compensation for farmers. The discourse on potential price-fixing measures has sparked controversy, with critics warning that such actions could lead to food shortages.