Why are Grocery Prices Still Rising? New Study Says Washington is Targeting the Wrong Problem
PRI report finds geopolitical disruptions and government policies-not fertilizer company misconduct-are driving food
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PRI report finds geopolitical disruptions and government policies-not fertilizer company misconduct-are driving food inflation
SACRAMENTO, CA / ACCESS Newswire / August 3, 2026 / With grocery prices continuing to climb and Americans searching for answers, a new study released today by the Pacific Research Institute concludes that Washington is focusing on the wrong solution.
While the Federal Trade Commission has launched an investigation into fertilizer manufacturers, the new study by PRI senior fellow in business and economics Dr. Wayne Winegarden finds that today’s food inflation is being driven by global supply disruptions and government policies like tariffs that unnecessarily increase the cost of producing and transporting food-not widespread anticompetitive conduct.
The report, Taming the Grocery Bill: Policy Reforms to Make Food More Affordable and Prices Less Volatile, comes as the U.S. Department of Agriculture projects food prices will rise another 3.4 percent this year, continuing to strain household budgets nationwide.
Click here to download a copy of the study
“Families don’t want political finger pointing-they want to know why they’re paying more at the grocery store and what can actually be done about it,” said Winegarden. “The evidence shows that today’s higher food prices are the predictable result of supply disruptions, tariffs, and other costly laws and regulations. If policymakers truly want to lower grocery bills, they need to make it easier-not harder-to produce and move the food Americans depend on.”
The study examines how the conflict involving Iran disrupted global oil and fertilizer markets, sharply increasing farming and transportation costs throughout the food supply chain. It also details how China’s fertilizer export restrictions have tightened worldwide supplies while longstanding U.S. permitting delays and other regulations have made the nation’s agricultural supply chain less resilient to global shocks.
Instead of expanding federal investigations, the report recommends reforms aimed at lowering grocery costs and reducing future price volatility, including:
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Eliminating tariffs on food products and preserving tariff relief for fertilizers and other agricultural inputs;
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Reforming the federal permitting process to expand domestic production;
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Pursuing freer trade to reduce supply-chain disruptions; and
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Repealing regulations, including the Jones Act, that unnecessarily increase transportation costs.
“The affordability crisis isn’t just about inflation,” Winegarden said. “It’s about whether our policies make America’s food system more resilient-or more vulnerable-the next time the world experiences a major disruption.”
The report concludes that reducing unnecessary regulatory barriers and improving market flexibility would help lower grocery prices while strengthening America’s food supply against future geopolitical shocks.
The Pacific Research Institute (www.pacificresearch.org) champions freedom, opportunity, and personal responsibility by advancing free-market policy ideas. Follow PRI on Facebook, X, and LinkedIn.
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SOURCE: Pacific Research Institute
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