“For milk and eggs, retail inflation was significantly higher than cost inflation,” Groff wrote in the March email, Bloomberg reported.

In response to questions about the email, Groff said Kroger’s goal was to “pass our inflation on to consumers,” according to the news channel.

A Kroger spokesperson downplayed the remarks, saying in a statement to Business Insider: “This selected email covers a specific time period and does not reflect Kroger’s decades-long business model of lowering prices for customers by reducing margins.”

The debate over food costs came to light against the backdrop of growing national attention to inflation and price gouging.

Vice President Kamala Harris, the 2024 Democratic presidential candidate, recently unveiled her plan to curb grocery inflation, which includes the first-ever federal ban on excessively inflated food and grocery prices.

Harris’ plan has drawn mixed reactions from experts and economists, with some criticizing it as unnecessary government intervention in an issue they believe is not at the heart of the inflation problem that has plagued Americans in recent years.

Meanwhile, Kroger and Albertsons continue to battle in court with U.S. regulators seeking to block the planned $24.6 billion merger of the two companies – the largest supermarket merger in U.S. history.

The supermarket chains argue that Kroger’s acquisition of Albertsons would increase competition with its retail rivals such as Walmart, Costco and Amazon. The FTC argues the opposite, saying the deal is anti-competitive and would lead to higher grocery prices for millions of Americans and lower wages for workers.

Both sides are presenting their arguments before U.S. District Judge Adrienne Nelson, who will decide at the end of next month’s hearing whether to grant 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 be torpedoed.