Politicians and customers unite in urging companies to lower prices amid inflation rage.

• Some companies, including Walmart, McDonald's, and Kroger, have become the focus of political discussions regarding potential price increases or other actions that may negatively impact American consumers' finances.
• Politicians have blamed different causes for consumers' frustration with high prices on the campaign trail.
• During contentious times, politicians in swing states can safely bet on promising to tackle higher everyday costs, according to Cait Lamberton, a professor of marketing at University of Pennsylvania's Wharton School.

Politicians are targeting food chains and consumer product companies due to concerns about high-priced Big Mac meals and potential surge pricing in grocery stores.

Several companies, including and , have become embroiled in the discussion surrounding high inflation during the 2024 election.

On Monday, Senators Elizabeth Warren and Bob Casey wrote to Kroger CEO Rodney McMullen, expressing concerns about the company's implementation of electronic shelf labels and their potential impact on increasing the prices of high-demand items. The letter also highlighted the possibility of Kroger's growth if it proceeds with its $24.6 billion acquisition of Albertsons.

Inflation frustration is being exploited by Democrats, especially those running in swing states, to gain an advantage over corporations, which have been blamed for price hikes by Republicans for years.

In late May, a House Republican leadership-run X account criticized Biden's economic policies by listing some popular fast-food menu items that customers now pay more for at McDonald's, Chick-fil-A, and Taco Bell. However, the source of the data is unclear, and McDonald's has denied that its average prices have risen that much.

While on the campaign trail, both Democratic Vice President Kamala Harris and Republican former President Donald Trump have vowed to combat inflation, but they attribute different reasons for it.

During her rallies, Harris has pledged to combat "price gouging" by corporations. At his rallies, Trump has attacked the Biden administration's policies and vowed to put an end to the "inflation crisis."

The criticism that both parties have made fighting inflation a key campaign plank highlights the importance of the cost of food, gas, and shelter to consumers, regardless of their income, location, or political affiliation. This pressure on companies to lower prices or provide value could further intensify.

While inflation has decreased from its recent highs, the cost of groceries has increased by approximately 1.1% year over year as of June, according to data from the U.S. Bureau of Labor Statistics. However, the cost of food at home has risen by 26.2% since June 2019, while the cost of food away from home, primarily restaurant meals, has increased by 27.2% in the same time frame.

In a recent poll by The Economist/YouGov, Americans identified inflation and prices as their top concern, with more than 1,600 U.S. adults surveyed. This was followed by other campaign issues such as immigration, climate change, and health care.

During challenging times, promising to address higher everyday expenses is a reliable campaign promise, according to Cait Lamberton, a marketing professor at the University of Pennsylvania's Wharton School.

"Although we don't agree on much, we can agree on that," she said.

The cost of necessities is a clear indicator of how a policy will impact voters' lives.

"Believing my grocery bill can go down is causally connected to voting for a person," she stated.

McDonald's, Walmart face price criticism

Kroger was only the latest high-profile company named in political rhetoric around inflation.

In late May, McDonald's faced criticism on social media regarding its affordability. An $18 Big Mac meal was posted on social media, along with charts claiming that the chain's prices had doubled over the past five years.

Republicans seized the opportunity to criticize Biden's economic policy by linking the increase in McDonald's menu prices to it, in an attempt to appeal to voters disillusioned with inflation. However, the post on X did not condemn McDonald's for the price hikes.

McDonald's U.S. President Joe Erlinger took a significant step by writing an open letter and releasing fact sheets on the chain's pricing in response to the uproar. This move was unusual for the company, which usually handles rumors or negative press with a brief statement, not a lengthy letter from a top executive.

McDonald's revealed that the real prices for a Big Mac or a 10-piece McNugget have increased by 21% and 28%, respectively, in the past five years. While these are substantial hikes, they are not as significant as what has been portrayed on social media.

Erlinger wrote that the prices at local McDonald's are likely to be a topic of discussion and attention during the upcoming election cycle.

Several senators have criticized Walmart and Kroger for implementing technology that could increase food prices.

In their Monday letter, Warren and Casey questioned the need for electronic shelf labels at Kroger, which enable "dynamic pricing," a practice associated with airlines and Uber's surge price increases based on high demand, since Kroger already has high profits.

The senators wrote that it is unacceptable that families are still struggling to afford food while grocery giants like Kroger continue to implement surge pricing and other profit-driven strategies.

In May, Sen. Sherrod Brown, D-Ohio, who is running for reelection in a red state, wrote a letter to Walmart expressing his concerns about the company's use of dynamic pricing shelf labels.

In addition to Casey and Brown, other senators in competitive races have also criticized snack makers for "shrinkflation," which involves reducing the size of items while maintaining the same price.

A Walmart representative stated that the retailer will maintain its "everyday low price" strategy and highlighted some of its back-to-school promotions, such as a lunch basket for two weeks that costs approximately $2 per day.

Kroger did not reveal how it plans to utilize electronic shelf labels, but the supermarket chain stated in a statement that maintaining low prices is a key component of its strategy.

"By offering lower prices, we can attract more loyal customers and expand our business," the company stated.

To counter criticism, companies should improve their communication about rising costs and renegotiate with vendors, as well as enhance their storytelling in advertisements, according to Wharton's Lamberton.

As families prepare for the start of school, Amazon and Walmart have advertised school supplies at competitive prices, with Amazon running TV commercials that urge parents to save money on their children.

Companies lean into value

In the upcoming two weeks, several major retailers such as Walmart, Home Depot, and Target will release their earnings reports. These companies may justify their prices and emphasize the benefits they offer, similar to what some restaurants have done.

In late July, Chipotle CEO Brian Niccol denied that the company had instructed workers to put less in burrito bowls, but emphasized the importance of generous portion sizes. Like McDonald's, Chipotle faced social media backlash, but this time it was over portion sizes rather than prices.

In response to criticism on social media about its high prices, McDonald's introduced a $5 value meal promotion in most U.S. markets in June.

Like Wendy's and Taco Bell, other fast-food chains have introduced or revived their own $5 value meals to increase sales and divert attention from their brands as potential "greedflation" targets.

Recently, consumers have reduced their spending at restaurants due to business realities.