Aug 1 (Reuters) - The U.S. Federal Trade Commission will

probe why grocery prices remain high even as costs for retailers

fall, Chair Lina Khan said on Thursday, a key theme for the

Biden-Harris administration as it heads towards the presidential

election.

Once the FTC votes to authorize the study, major grocery

chains would be ordered to provide information on their costs

and prices on common products. Khan made the announcement at a

public meeting with Justice Department officials on pricing

practices.

The biggest U.S. industry players include Walmart ( WMT );

club grocery chain Costco Wholesale Corp ( COST ); Amazon.com ( AMZN )

, which operates Whole Foods; and big box retailer

Target ( TGT ).

Food prices have risen 25% between 2019 and 2023, faster

than other consumer goods and services, U.S. Department of

Agriculture statistics showed. An FTC study showed food prices

for U.S. consumers rose 11% between 2021 and 2022, while profits

for food retailers went up more than 6%.

"We want to make sure that major businesses are not

exploiting their power to inflate prices for American families

at the grocery store," Khan said.

The FTC has played a major role in the Biden

administration's efforts to cut costs for U.S. households,

targeting high prices and junk fees on products and services

ranging from airfare to credit cards.

Billionaire Democratic donors, some affiliated with

businesses the FTC has sued, have urged Vice President Kamala

Harris, the Democratic presidential nominee, to replace Khan if

elected.

The agency last week launched an inquiry into services that

could let companies set different prices based on the shopper's

personal information.

The FTC earlier this year sued to block Kroger's ( KR )

acquisition of smaller grocery store rival Albertsons ( ACI ), citing

concerns the deal would hike prices for millions of Americans.