PORTLAND, Oregon, Sept 4 (Reuters) - Kroger ( KR ) CEO

Rodney McMullen attributed rising grocery prices to increasing

costs for retailers as he defended the grocery chain's proposed

$25 billion merger with rival Albertsons ( ACI ) at a trial on

Wednesday.

In testimony a trial in Portland, Oregon, McMullen cited

rising supplier costs, fuel prices and credit card swipe fees

when asked by the company's lawyer why prices have risen.

The U.S. Federal Trade Commission and several states sued in

federal court to block the merger, and are seeking to show the

deal would lead to higher prices and reduce the bargaining

leverage of unionized store workers by ending the fierce rivalry

between Kroger ( KR ) and Albertsons ( ACI ).

Soaring food prices, which have become a hot button

political issue in the U.S. presidential race, have risen 25%

between 2019 and 2023, faster than other consumer goods and

services, U.S. Department of Agriculture statistics showed.

"Absolutely not," McMullen replied when asked if Kroger ( KR )

would raise its prices after the merger. "We believe over time,

value will be increasingly important and you can't price your

items above the market."

Kroger ( KR ) has argued it needs the increase in scale from the

merger to compete with Walmart ( WMT ), the largest U.S.

retailer, while Albertsons ( ACI ) has said if the deal falls through,

it may have to consider layoffs and store closures.