Inflation Slows in September for First Time in 2022
New data from IRI shows that in the month of September, inflation at the grocery store slowed down for the first time this year.
Food and beverage prices in September increased by 1.0% compared to August, according to the group’s September 2022 Price Check report. Food and beverage prices still remain high, about 13.3% higher year-over-year through the five weeks ending Oct. 2, 2022. The 1.0% overall price increase shows a moderating trend for inflation after months of steady increases.
High inflation on food and beverage products has pushed a majority of American consumers to start purchasing more private label products.
“September data revealed some welcome news for consumers: price inflation is slowing down for the first time this year in the perimeter categories that account for nearly $200 billion in annual retail sales,” said Krishnakumar (KK) Davey, president of Thought Leadership for CPG and Retail at IRI and NPD. “However, overall grocery bills are still significantly higher than this time last year, causing shoppers to shift their purchase habits. IRI is continuing to track food and beverage price inflation carefully to ensure that manufacturers and retailers are able to respond to shifts in consumer behavior and execute price, promotion and supply chain strategies that help them drive growth in this dynamic economic environment.”
IRI also found that in the month of September, prices in perimeter categories were 9.6% higher compared to the same month a year ago, though year-over-year inflation in these categories has declined every month since February. For the five weeks ending Oct. 2, 2022, prices in the alcohol segment were up 4.2% year-over-year, while dairy (+19.6%) and frozen meals and other frozen foods (+18.4%) were up dramatically higher year-over-year.
IRI noted that to deal with the continued high prices of groceries, more consumers are reducing their consumption, making more quick trips instead of large grocery hauls, and shifting to more bulk pack sizes for more value.
The full report from IRI can be found here.