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August Inflation Reported at Retail by Information Resources, Inc.; Krishnakumar (KK) Davey Shares

August Inflation Reported at Retail by Information Resources, Inc.; Krishnakumar (KK) Davey Shares


CHICAGO, IL
Wednesday, September 14th, 2022

Information Resources, Inc. (IRI) is keeping a close eye on the continued increases in inflation as it affects consumer shopping behavior. As prices continue to rise, the company is keeping the rest of the industry informed by leveraging the latest point-of-sale data for August 2022 in its August 2022 Price Check: Tracking Retail Food and Beverage Inflation. In the report, statistics show consumers are beginning to cut back on grocery spending.

Krishnakumar (KK) Davey, President of Thought Leadership for CPG and Retail, Information Resources, Inc. and The NPD Group“We are beginning to see consumers scale back purchases both in terms of units and volume in recent weeks, as retail food and beverage prices have continued to rise,” said Krishnakumar (KK) Davey, President of Thought Leadership for CPG and Retail, IRI and The NPD Group. “While retail food and beverage sales had been fairly resilient, we’re seeing signs of consumer stress, particularly among low-income households. Consumers are buying less in discretionary food and beverage categories and are shopping more frequently in search of better prices. At the same time, consumers are willing to pay a premium for some categories—such as pasta, pasta sauce, butter, and frozen entrées—which are considered affordable indulgences for more cash-strapped shoppers.”

Data from August shows that the prices of consumer goods remain elevated across categories, the release stated. Food prices have risen 1.6 percent from the end of July to the end of August and 13.4 percent year-over-year through the week ending August 28, 2022.

With food prices rising 1.6 percent from the end of July to the end of August, consumers are beginning to change their shopping behaviors to conserve money and combat inflation

Some other key insights from the report include:

  • Persistent inflation - Food and beverage inflation continues to persist on a year-over-year basis. Butter/margarine/spreads is the most inflated category, with prices up 30 percent compared to the same time last year
  • Consumers are bargain hunting - Trips to food and beverage stores are up 3.5 percent versus a year ago for the latest 12 weeks ending Aug. 21, 2022. Quick trips are up 6.7 percent during the same period compared to a year ago, while pantry stocking trips are down 0.6 percent, suggesting that consumers are looking for deals and “cherry-picking” stores where they can get the best value. And, when they stock their pantries, there is an uptick in trips to mass merchandisers and club stores, indicating value-seeking behaviors
  • Premiumization continues in select categories - Despite inflation, consumers are “trading up” and driving volume share to premium brands in several categories, including snack nuts and seeds, canned and bottled fruit, frozen entrées, and fresh eggs and butter

To dig into the IRI’s report, click here.

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Information Resources, Inc.
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