Fresh fruit led August inflation jumps in food and beverage, says IRI
The steady climb of inflation affected categories across the grocery store in August.
That's according to global tech, analytics and data provider Information Resources Inc.'s recent report, "August 22 Price Check: Tracking Retail Food and Beverage Inflation," tracking food inflation and its impact on consumer behavior.
According to the report, prices for food at home rose 1.6% from the end of July to the end of August, and 13.4% year over year through the week ending Aug. 28. Fresh fruit and carbonated beverage categories vied for the largest monthly price jump in August, each rising 5.3% compared to the end of July.
Food and beverage inflation has persisted, despite price moderation in other areas of the economy, such as gasoline. Overall retail food and beverage unit sales declined 4.5% compared to a year ago, and volume sales declined 4.0%, according to the report. What’s more, the IRI data shows that prices of consumer goods remain elevated across categories.
The upshot? Consumers are adapting and indulging more affordably on grocery items such as pasta, butter and frozen entrees. There’s also evidence in the report that suggests shoppers are increasingly trying out bargain-hunting strategies to stay on budget, such as planning additional grocery trips to cherry-pick specific items, ensuring the best price.
“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,” Krishnakumar Davey, president of thought leadership at IRI, said in a news release. “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."
