NEW YORK ( TheStreet) -- Grocery stocks are in the red following the downgrade of several companies in the sector.

Morgan Stanley lowered its ratings on Supervalu ( SVU) and Safeway ( SWY) to underweight on concerns of inflationary pressure. Shares of Safeway are falling 4% to $21.59, while Supervalu is plunging 8.4% to $8.81. Rival Kroger ( KR) is also feeling the pain of its peers, with shares declining 1.8% to $21.61in morning trading.

Whole Foods Market ( WFMI) was lowered to market perform by BMO, following a surge in the stock in 2010. Shares of the company are off 2.9% to $49.28 early in the day.

--Written by Jeanine Poggi in New York.

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