A Kroger exec reportedly testified that the supermarket giant raised prices of milk and eggs beyond inflation costs

• A Kroger executive reportedly testified the company raised milk and egg prices beyond inflation.
• The testimony came amid a legal battle over Kroger's proposed $24.6 billion merger with Albertsons.
• The FTC is fighting to block it, arguing it would result in higher grocery prices for millions.

A top Kroger executive testified that the grocery chain hiked the prices of milk and eggs beyond the added costs from inflation, according to a new report.

The remarks were made during a court hearing over antitrust regulators' attempt to block the supermarket giant's merger with the grocery chain Albertsons , Bloomberg reported.

While testifying in Oregon federal court on Wednesday, Kroger's senior director for pricing, Andy Groff, was questioned by a Federal Trade Commission attorney regarding an internal email he sent to other Kroger executives earlier this year about the prices of the staple household items.

"On milk and eggs, retail inflation has been significantly higher than cost inflation," Groff wrote in the March email, Bloomberg reported .

In response to questions about the email, Groff testified that Kroger's objective was to "pass through our inflation to consumers," according to the news outlet.

A Kroger spokesperson downplayed the remarks, saying in a statement to Business Insider: "This cherry-picked email covers a specific period and does not reflect Kroger's decades-long business model to lower prices for customers by reducing its margins."

The discussion around grocery costs came to light amid growing national attention on inflation and price gouging .

Vice President Kamala Harris , the 2024 Democratic presidential nominee, recently unveiled her plan to crack down on grocery inflation, which includes what would be the first-ever federal ban on excessive overpricing of food and groceries.

Harris' plan has sparked mixed reactions from experts and economists , with some criticizing it as unnecessary government intervention into an issue they argue is not at the core of the inflation problem that has affected Americans in recent years.

Meanwhile, Kroger and Albertsons continue to duke it out in court against federal regulators who are trying to block the companies' proposed $24.6 billion merger — the largest for supermarkets in US history.

The supermarket chains argue that Kroger's acquisition of Albertsons would boost competition with its retail rivals such as Walmart , Costco, and Amazon , while the FTC alleges the opposite, saying the deal is anticompetitive and would result in higher grocery prices for millions of Americans, as well as lower wages for workers.

Both sides are making their case before US District Judge Adrienne Nelson, who will decide at the end of the hearing next month whether to approve the FTC's request for a preliminary injunction against the merger.

If the judge rules in favor of the FTC, the deal between Kroger and Albertsons could end up torpedoed.