Rising inflation fuels investigation into food pricing practices
Due to rising grocery prices and ongoing concern over food affordability, President Donald Trump ordered a sweeping federal investigation into alleged price fixing and anti-competitive behavior within the nation’s food supply chain.
According to new data released by the Bureau of Labor Statistics, food prices for U.S. consumers increased steadily in December 2025, rising 0.7 percent – the largest increase since October 2022 – and pushing year-over-year food inflation to 3.1 percent.
The agency reports notable increases in the price of fruits, vegetables and dairy products, as well as beef prices which climbed one percent, steak prices which surged 17.8 percent, coffee prices which rose 1.9 percent and the cost of food at restaurants and other outlets which increased 0.7 percent.
Trump signs EO
Weeks before the bureau’s updated inflation data was released, Trump signed an executive order (EO) on Dec. 6, 2025 directing the Department of Justice (DOJ) and Federal Trade Commission (FTC) to investigate whether anti-competitive behavior like price fixing and foreign ownership is contributing to higher food costs for American consumers.
“An affordable and secure food supply is vital to America’s national and economic security,” the EO states. “However, anti-competitive behavior, especially when carried out by foreign-controlled corporations, threatens the stability and affordability of America’s food supply.”
Under the order, both the DOJ and FTC are required to establish Food Supply Chain Security Task Forces to investigate food-related industries, including meat processing, seed, fertilizer and ag equipment.
The agencies are tasked with determining whether illegal collusion or market concentration is inflating prices or creating national and economic security risks.
If evidence of criminal collusion is uncovered, Trump has instructed the attorney general to pursue criminal proceedings, including potential grand jury investigations.
The DOJ and FTC are authorized to propose new regulatory approaches if anti-competitive behavior is identified.
Additionally, both task forces are required to brief Congressional leadership with a summary of their progress 180 days after the president’s order and again a year later.
Meatpacking and foreign ownership
According to a Dec. 7, 2025 DTN article, Trump referenced past civil settlements involving price-fixing allegations in the meat industry as justification for the investigation, noting several major meatpackers have paid tens of millions of dollars to resolve federal lawsuits in recent years, although there have been no criminal convictions.
DTN reports the president repeatedly singled out foreign-owned meatpacking companies as a source of pricing pressure, and in November, he publicly called for a renewed DOJ investigation into beef prices, accusing foreign-owned packers of manipulating markets.
“We will always protect our American ranchers, and they are being blamed for what is being done by majority foreign-owned packers who artificially inflate prices and jeopardize the security of our nation’s food supply,” Trump posted on Truth Social. “Action must be taken immediately to protect consumers, combat illegal monopolies and ensure these corporations are not criminally profiting at the expense of the American people. I am asking the DOJ to act expeditiously.”
Additionally, DTN says the U.S. Department of Agriculture was not assigned a formal role in the task forces outlined in the EO, raising questions among farm groups about how producer impacts will be evaluated.
Inflation pressure
According to a Jan. 13 Reuters article, food and housing costs were the primary drivers of December’s 0.3 percent increase in the Consumer Price Index (CPI), underscoring what many economists are describing as a “persistent affordability crisis.”
Reuters notes while underlying inflation remained moderate, higher grocery and restaurant prices are proving more challenging for consumers.
“Families may not closely track core inflation, but they see grocery prices and restaurant costs immediately,” says Sung Won Sohn, Loyola Marymount University finance and economics professor. “A renewed push in food prices is not merely a statistical detail, it can influence public perception, wage negotiations and ultimately economic behavior.”
Multiple sources cite economists who believe that although some ag tariffs have been rolled back, it may take time before consumers see meaningful relief at the checkout line.
Other sources report, despite Trump blaming inflation on policies enacted under the Biden administration, polls have shown many consumers are shifting blame to him instead.
“Twice as many Americans believe their financial security is getting worse rather than better, according to a Harris Poll conducted for The Guardian last month, and they are increasingly blaming the White House,” writes Michael Sainato in a Jan. 13 article published by The Guardian.
Continued uncertainty
Overall, sources are uncertain what this investigation will produce.
DTN points out the president’s recent order marks a shift from his earlier stance on competition policy. In August, he rescinded a Biden-era EO directing agencies to scrutinize corporate consolidation across industries, including agriculture and food.
DTN further reports during Trump’s first term, the DOJ examined meatpacker pricing following a 2019 Tyson Foods plant fire and pandemic-related disruptions, but no public findings were released.
Meanwhile, Reuters notes inflation remains above the Federal Reserve’s two percent target, with the CPI holding steady at 2.7 percent year-over-year in December.
For now, consumers facing higher grocery bills are left waiting to see if the administration’s investigation will lead to concrete action or lasting relief.
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
