While some areas of the economy have recently exhibited signs of cooling inflation, this has not been true for the food and beverage categories. In fact, the latest IRI research shows retail food and beverage inflation up 13.4% year over year in August. At 1.6%, August also brought the highest month-over-month category price increases so far in 2022.
As an IRI report shows, this inflationary pressure is creating volume declines in most categories and is hitting low-income households hardest. In response, these families are pulling back on overall purchases and trading out of the indulgence and splurge categories. Quick trips are also on the upswing, suggesting a shift to more deal-seeking shopper behavior.