AG Tong probes grocery chains about price increases, ‘shrinkflation’

Attorney General William Tong is expanding an existing state inquiry into high grocery prices. Tong sent a letter to five of the top food distributors with footprints in Connecticut, seeking to meet to discuss price trends. “We would appreciate the opportunity to meet with you in hopes of better understanding your views about food prices in the State, food pricing causes and practices throughout the supply chain, as well as address the concept of shrinkflation,” Tong’s letter says. “Shrinkflation” is a strategy used by manufacturers, which involves reducing the size or quantity of a product while the price remains the same. Tong first launched the inquiry in 2024 at the request of legislators seeking to understand the root causes of price spikes, to assess whether price gouging or other unfair practices were contributing to the high costs. The Attorney General’s office says to date the inquiry has identified no immediately apparent evidence of illegal pricing at the retail level. The expanded inquiry will examine companies higher up the supply chain to better understand additional pricing pressures and determine whether anyone may have unfairly profited. “No one needs a report to see that grocery prices are way too high and that Connecticut families are getting squeezed,” Tong said. “[We] will not hesitate to use the full weight of our enforcement authority against any unlawful profiteering and federal overreach harming consumers.” In a statement to the Hartford Business Journal, Wayne Pesce, president of the Connecticut Food Association, said food retailers were transparent during the initial investigation and he expects distributors will be as well. "Food costs have been driven by rising labor, transportation, and energy costs. Add tariffs, droughts, and record inflation to this mix, and you have the answer the AG is seeking on food prices," Pesce said. "Have you been out to a restaurant lately and ordered a steak? Same cost pressures in food service as in food retail."