Data firm IRI’s November 2022 Price Check report shows that food and beverage inflation is slowing, up only 0.3% since October.
The less than 1% increase is less than the 0.5% jump in October compared to September. The latest data shows that food inflation increased 13.2% compared to November of last year. To combat rising prices, IRI noted that consumers are continuing to reduce spending by switching to private brands, as well as trading out of expensive food categories.
“The pace of food inflation is leveling 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 behavior 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.”
IRI noted that perimeter areas, including produce and deli, have seen inflation moderate to 8.2% versus one year ago, while center store inflation is still high at 14.9% versus November 2021. Categories with the largest month-over-month price decreases included root vegetables (-7.2%), bacon (-3.4%), butter/margarine/spreads (-2.0%) and chocolate candy (-2.0%).
Fresh meat and seafood and beverage alcohol segments rose just 4.3% versus October and 6.3% versus one year ago. Dairy (+23.4%) and bakery products (+18.4%) saw the largest increases compared to last year.
The full November 2022 Price Check by IRI can be found here.