3 Reasons Groceries Could Be Cheaper in 2025 Now That Republicans Control Congress
Written by
Heather Altamirano
Edited by
Zuri Anderson
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Groceries are still taking a big bite out of Americans’ wallets, and consumers are tired of the price gouging.
While online grocery prices decreased 0.1% in October, according to new data from the Adobe Digital Price Index (DPI), shoppers still feel the financial burden of putting food on the table, which was a deciding factor for many voters in the presidential election, per exit polls.
Reasons for the continued high prices vary, from disruptions in chain supplies due to COVID-19 to global conflicts and corporate greed, according to politicians.
“Grocery prices skyrocketed during the pandemic, and in many cases, they’ve kept going up, even though the pandemic is over,” Sen. Elizabeth Warren, D-Mass., said in a Senate hearing. “Grocery prices are up because of good old-fashioned corporate price gouging. And they can gouge consumers on prices because there’s only a small number of companies controlling every level of the food chain.”
With Republicans controlling Congress next year, inflation-weary Americans hope to see a price drop in groceries, which could happen, according to finance expert Brian Chasin, CFO at Soba New Jersey.
Energy Cost Reductions
Energy impacts almost 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 the price of food.
When energy prices decrease, so does the price of food because operational expenses fall for grocery companies and their distributors.
“With Republicans in charge of Congress, the top policy priority could be efforts to boost U.S. energy production, which includes lifting drilling restrictions, opening new areas for pipelines or natural gas extraction,” according to Chasin. “These steps can result in reduced energy prices by increasing supply and decreasing reliance on foreign sources of energy.
“This is important because lower diesel prices mean lower cost for transporting produce from farm to distribution center and ultimately lowers the price paid at the check-out counter. Lower energy costs for agricultural activities, irrigation, refrigeration, and processing, etc., also translate directly to the cost of goods (COGs).”
Deregulation
Restrictions are implemented to protect public health and ensure companies operate ethically. However, regulatory compliance is a big cost factor passed on to consumers.
Congress could relax certain regulations to slash prices, but it would cause other concerns.
“At times, Republican policymakers will propose deregulation to reduce these compliance costs. For instance, easing restrictions on the use of pesticides or genetically modified crops could help farmers boost output while cutting down production costs,” Chasin noted. “Likewise, loosening transportation restrictions like truck driver hour limits or weight limits could ease distribution hurdles and drive down distributor expenses.”
While this could lower food costs, there are also disadvantages.
“Deregulation is not a silver bullet; the devil is always in the details,” Chasin noted. “One must go so far as to exchange lowered costs for businesses with safety and sustainability.
“Inevitably, it could come back to bite us, but creating efficiencies will reduce cost burdens for companies and eventually cost burdens on consumers.”
Supply Chain Improvements
The global shutdown during the pandemic highlighted several weaknesses within the food supply chain and caused widespread problems on an unprecedented scale. Labor shortages, transportation disruptions, and increased pressure on farmers and distributors were some of the issues that led to a shortage on the shelves and increased food prices.
“Perhaps with a Republican Congress, it would frame those issues regarding infrastructure investments or labor reform, as well as policies that encourage private-sector change,” Chasin explained.
“Such actions can involve increasing highway systems, upgrading port capabilities to mitigate congestion and improving the movement process.”
Why Food Prices Could Increase Even More
While there are ways Congress can reduce the price of groceries, President-elect Donald Trump’s policies can also raise the costs.
Trump has been vocal about his plans to deport immigrants living in the U.S. illegally, which would cause higher food prices, according to Per Sjofors, founder of The Price Whisperer™.
“Deportation of [immigrants living in the U.S. illegally] will create a scarcity of farmworkers, leading to higher cost of farming and possibly even scarcity of certain food items as they cannot be harvested without people — the people who were deported,” he explained.
In addition, Trump’s tariff proposals will also cause a hike in food prices, per Sjofors.
“The planned tariffs become a tax on American consumers, and prices in general will increase, increasing the inflation rate,” he said. “Increasing inflation will increase interest rates, which will increase the cost for farmers and the entire supply chain, leading to higher grocery prices.”
The Bottom Line
Americans want relief now from inflated grocery prices, but it’s not likely to happen with Trump in the White House, according to Sjofors.
“The tariffs will also increase the prices of many imported equipment and spare parts used by farmers and the supply chain, leading to higher cost and prices.”
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