Following a hint from Kantar data earlier this week that food inflation may be starting to slow in the UK, separate research points to a similar trend in the US.
IRI’s latest Retail Food And Beverage Price Check shows prices across US food channels in November increased by 0.3% compared to October. The increase is less than the 0.5% jump in October compared to September. Overall food inflation grew 13.2% versus one year ago. However, IRI noted monthly increases compared to one year ago have levelled off over the last four months.
Consumers were found to be continuing to employ a range of strategies to reduce spending, such as switching to private labels, trading out of expensive food categories and trading down to mainstream and value brands, as well as consuming more at home versus away from home.
“The pace of food inflation is levelling off but remains at a robust 13% level versus one year ago,” said Krishnakumar (KK) Davey, president of Thought Leadership for CPG and Retail, IRI and NPD.
“IRI anticipates consumers will continue their trading down behaviour over the December holidays and into the new year. However, in some segments, consumers will splurge to celebrate the holidays. 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.”
