California grocery prices could rise as plastic packaging law takes effect

California will start collecting packaging-law fees next month, and regulators/industry groups warn compliance costs could be passed through to grocery prices. The change is likely to create near-term cost pressure for retailers and packaged-goods players, with potential modest upward impact on food inflation expectations.

Analysis

California will start collecting packaging-law fees next month, and regulators/industry groups warn compliance costs could be passed through to grocery prices. The change is likely to create near-term cost pressure for retailers and packaged-goods players, with potential modest upward impact on food inflation expectations.