Americans believe inflation for food-at-home has hit 22.8 percent, 9.7 points higher than the U.S. Bureau of Labor Statistics annual rate of 13.1 percent, according to a dunnhumby Consumer Trends Tracker report released Monday.
“Seven months ago we first reported on the mismatch between consumer sentiment and reality regarding food inflation. We now we see it’s at the highest point to date, and we are also seeing that consumers are responding by changing their shopping behavior, and perhaps most troublingly, nearly a third are cutting back or completely eliminating some meals,” said Grant Steadman, president for North America at dunnhumby, in a statement. “While there are signs in parts of the economy that inflation may be dampening, that has not occurred yet for food. Retailers and manufacturers need to ensure that they are putting their customers first when they are making decisions about how to respond to persistent inflationary cost pressures.”
The report was conducted in July of this year via an online survey of 2,000 U.S. shoppers. The study was designed to reveal shopper needs, perceptions, and behavior over time. Other insights from the study include:
• A majority of consumers report financial struggles: if covering an unexpected expense of $400 or more, 64 percent report difficulty making ends meet, up 4 percent from the April-May 2022 report.
• U.S. food insecurity continues to rise: consumers report not getting enough food they want to eat (55 percent), and 18 percent are not getting enough to eat.
• Consumers trade down at the grocery store: about 83 percent of respondents are looking for cheaper alternatives in at least one category.
The report also found that consumers are seeking cheaper alternatives in packaged food, frozen food, and household products. To facilitate the need to save, shoppers continue to shift toward dollar and discount stores at the expense of specialty or premium retailers.
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