> Unless there is price fixing going on, why would I raise my prices with the other groceries stores? You would raise your prices because you see your competit

> Unless there is price fixing going on, why would I raise my prices with the other groceries stores? You would raise your prices because you see your competitors are raising theirs, and you like money. You can also have more confidence there won't be much blowback if you're not the only one raising prices. > Everyone would see the higher prices and instead shop at my store with normal pricing. That kind of logic has demonstrably not kept inflation under control (IIRC, much of the "inflation" over the last few years was businesses raising prices to increase profits, and using "inflation" as an excuse). It's probably possible to spread out price increases slowly enough that it doesn't tend to hit many people's "switch to competitor" threshold.