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IRI November Inflation Tracker Reveals Price Increases Are Slowing, but Still Up 13% over Last Year

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CHICAGO–()–IR extension®that recently united with The NPD Group to create a leading global provider of technology, analytics and data, today released a new report, November 2022 Price Watch: Tracking Retail Food & Beverage Inflation, offering new insights into food inflation and its impact on consumer buying behavior. The report leverages store data for November 2022 and includes data across all U.S. grocery channels, including Grocery, Drug, Mass Market, Military Commissars, and Select Club and Dollar Stores, as well as e-commerce.

The latest data shows that food and beverage prices in November 2022 increased by 0.3% compared to October. This increase is less than October’s 0.5% jump over September. Overall food inflation rose by 13.2% from a year ago; however, monthly increases from a year ago have leveled off over the past four months. Consumers continue to use a variety of strategies to reduce spending, such as switching to private labels, eliminating expensive food categories and switching to traditional and valuable brands, as well as consuming more at home rather than on the go.

“The pace of food inflation is stabilizing but remains at a robust 13% level from a year ago,” said Krishnakumar (KK) Davey, president of Thought Leadership for CPG and Retail, IRI and NPD. “IRI expects consumers to continue their bearish behavior into the December holidays and into the New Year. However, in some segments, consumers will allow themselves the luxury of celebrating the holidays. Retailers and manufacturers with in-depth knowledge of consumer strategies have an excellent opportunity to build loyalty by offering products, price ranges and pack sizes that offer good value.”

To ensure retailers and manufacturers develop their go-to-market strategies with the most up-to-date information, IRI will continue to closely monitor consumer behavior and provide constant updates and guidance.

Key insights from the November 2022 inflation report include the following:

  • Inside the store, inflation has moderated.

    • The perimeter areas, including produce and deli, saw moderate inflation at 8.2% from a year ago, while inflation within the central store, which includes snacks, frozen meals and other frozen foods, eased it stabilized in November at 14.9% compared to a year ago.

  • Several product categories saw lower prices in November than in October.

    • The categories with the largest month-on-month price decreases included root vegetables (-7.2%), bacon (-3.4%), butter/margarine/spreads (-2.0%) and chocolate candy (-2.0%). -2.0%).

  • Inflation varied significantly throughout the store.

    • The fresh meat, seafood and alcoholic beverages segments were up just 4.3% from October and 6.3% from a year ago. However, other categories increased significantly, such as dairy products (+23.4%) and bakery products (+18.4%).

  • Food inflation hasn’t diminished Thanksgiving celebrations for most American families.

    • Inflation for the typical Thanksgiving meal is up 14.2% from a year ago, led by pies (+16.6%), side dishes (+17.8%) and baked goods (+17.4 %), while main courses increased by 11.8% compared to a year ago .

    • Thanksgiving volume sales saw a 72% increase in 2022 (compared to the weeks leading up to Thanksgiving), a 6 percentage point increase from Thanksgiving a year ago, suggesting overall Thanksgiving celebrations were unaffected from inflation.

    • About 44% of Thanksgiving sales were sold with deals, which is similar to 2021. 50% of main course sales and 54% of pie sales were sold with promotions.

Details of these and other findings are included in IRI’s November inflation report, released here.

About the IRI

IRI unifies technology, analytics and data to reinvent the way people and businesses make decisions, act and optimize performance. With the largest repository of buying, media, social, causal and loyalty data, all integrated into an on-demand cloud-based technology platform, IRI helps guide its more than 5,000 customers worldwide in their quest to capture share to market, connect with consumers, partner with key constituents, and deliver market-leading growth. For more information visit www.iriworldwide.com.

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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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