Overall food inflation grew 13.2 percent versus one year ago; however, monthly increases compared to last year have leveled off over the last four months, according to data from IRI. The company has released the report "November 2022 Price Check: Tracking Retail Food and Beverage Inflation," which uses point-of-sale data across U.S. food channels to offer insights into food inflation and its impact on consumer shopping behavior.
It shows that food and beverage prices in November 2022 increased by 0.3 percent compared to October, a modest increase below that of the 0.5 percent jump in October compared to September.
To combat inflation consumers employ a range of strategies to reduce spending, such as switching to private labels, trading out expensive food categories, and trading down to mainstream and value brands.
“IRI anticipates consumers will continue their trading down behavior over the December holidays and into the new year. However, in some segments, consumers will splurge to celebrate the holidays,” said Krishnakumar Davey, president of thought leadership for CPG and retail at the company, in a statement. “Retailers and manufacturers with an in-depth understanding of consumer strategies have an excellent opportunity to build loyalty by offering products, price points, and package sizes that provide good value.”
The impact of inflation is not linear in the grocery store: perimeter areas, including produce and deli, saw inflation moderate to 8.2 percent versus one year ago, while inflation within the center store, which includes snacks, frozen meals, and other frozen foods, has leveled off in November at 14.9 percent over the same period.
Between November and October, some categories became cheaper. Categories with the largest month-over-month price decreases included root vegetables lowering by 7.2 percent, bacon by 3.4 percent, and butter/margarine/spreads by two percent.
Despite the high price tag, food inflation did not diminish Thanksgiving celebrations for most U.S. households. A typical meal was up 14.2 percent from last year; however, volume sales increased by six percent compared to last year.
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