Information Resources, Inc. (IRI), which recently merged with The NPD Group , today released new insights about food inflation and its impact on consumer shopping behavior. The insights leverage the latest point-of-sale data for July 2022 and include data covering all U.S. food channels, including e-commerce.
July’s data shows that prices of consumer goods remain elevated across categories. Prices for food at-home rose 1.2% from the end of June to the end of July, and 14.4% year-over-year as of July 31. In June, at-home food prices rose 1.2% versus May, and 13.7% year-over-year as of June 30.
“Consumers are responding to rising prices by shopping promotions, prioritizing value options, and trading down to avoid going without,” commented Krishnakumar (KK) Davey, president of Thought Leadership for CPG and Retail. “We are advising our manufacturer clients to deploy all levers of strategic revenue management, prioritize strong in-market execution, and invest in retailer partnerships to ensure that the right products are available in the right places at the right times. Additionally, retailers must have the tools to quickly adjust to changes in consumer preferences to ensure they are offering the right assortment at price points that appeal to price-sensitive shoppers as well as their most valuable customers.”
Key insights from July include:
- Private Brand continues to grow in many food categories. Consumers are transitioning away from national brands in categories where store brands are already well-known or in commodity categories. In the four-week period ending July 24, 2022, private label share grew most in the fresh eggs (+6 pp), sugar (+5 pp), sour cream (+4 pp), shortening and oil (+3 pp), butter/butter blends (+3 pp), flour (+2 pp), frozen meat (+2 pp), and bottled water (+4 pp) categories.
- Persistent Inflation. Food and beverage inflation continues to persist on a sequential and year-over-year basis, despite recent price decreases in other areas of the economy (such as gasoline). Categories with the five largest increases in prices include: