Yogurt, Cereal, Frozen Foods See Highest Price Increases Since Last Year in Q1
In the U.S., yogurt and cereal prices both rose 21% year-over-year, followed by soft drinks & water (+19%), frozen foods (+17%), hand & bath soaps (+17%) frozen vegetables (+19%) and coffee (+16%). Paper products (+9%), soaps and detergent (+8%) and deodorant (+12%) also saw increases.
Overall, food inflation for the U.S. in Q1 2023 was up 7% compared to Q1 2022. In the U.K., food inflation is up 7% as well, followed by Italy (+6%), France (+5%) and Germany (+5%).
Increased food prices in the U.S. continue to push shoppers towards private brands. According to Circana data, store brand dollar volume jumped 10.3% year-over-year as of March 26. The growth is nearly twice that of national brands (which grew 5.6%), compared to the same three-month period a year ago.
“We continue to advise our customers that these challenging economic times are an opportunity for brands to fine-tune their omni-channel approach to deliver relevant offers and valuable incentives to help shoppers make the most of their dollars,” added Murphy.