• WASHINGTON 

Andy Harig, Vice President of Tax, Trade, Sustainability and Policy Development, Food Marketing Institute (FMI), said consumers remain under significant financial pressure as grocery affordability continues to dominate household concerns. Drawing from FMI’s latest consumer research, Harig noted rising food prices remain one of Americans’ greatest worries, with many families feeling their incomes have failed to keep pace with grocery costs.

Despite those challenges, Harig said shoppers continue to view grocery retailers as trusted partners.

“Consumers are really smart. They know what’s going on,” Harig said. “If we’re honest with them, they will reward us with their loyalty. But if we lie to them… they are going to tell us, ‘We don’t believe you.'”

Inflation Pressures Continue

Although overall inflation has moderated from pandemic highs, Harig said consumers should not expect food prices to fall.

“We do not see a situation where those food costs are going to come down or inflation is going to significantly moderate this year,” he said, citing higher diesel costs, fertilizer expenses, weather events and continued geopolitical uncertainty as ongoing pressures throughout the food supply chain.

Harig explained that while tariffs have received significant attention, their impact on grocery prices has been less severe than many expected because approximately 85% of the U.S. food supply is produced domestically. Exemptions for products not widely grown in the United States, including coffee, bananas and mangoes, have also helped limit price increases, although packaging costs continue to rise because of tariffs on materials such as aluminum, steel and paper.

Industry Policy Priorities

Harig said FMI’s federal priorities remain focused on SNAP implementation, evolving state food policies and ingredient transparency legislation. He noted the industry continues monitoring state SNAP waiver activity, potential administrative changes and efforts to create greater consistency around ingredient disclosure requirements nationwide.

Audience Q&A Focuses on Affordability

During the discussion, attendees asked how persistent affordability concerns could shape consumer behavior and the broader retail marketplace.

Harig said shoppers are already changing purchasing habits, with lower-income households buying more shelf-stable foods and lower-cost proteins as they adjust budgets. He added that retailers and manufacturers are actively exploring ways to lower prices while maintaining customer loyalty.

“This is a consumer who’s really exhausted,” Harig said. “They’ve lived through a period that they never thought they were going to.”

Looking ahead, Harig emphasized that transparency and long-term policy solutions will be essential as the industry navigates continued uncertainty.

“The U.S. food system… is the best food system in the world,” he said. “Is it perfect? No, but it is better to be an American if you are a budget shopper than anywhere else in this world right now.”

 ALA members can access Andy Harig‘s full video presentation and slides at https://alanational.org/members/2026-ala-congressional-caucus/.