Food and beverage prices in September 2022 increased by 1% compared to August, according to new data from Information Resources, Inc. (IRI). While food and beverage prices remain significantly elevated -- about 13.3% higher year-over-year through the five weeks ending Oct. 2, 2022 — overall year-over-year inflation was steady from August to September, showing a moderating trend after months of steady increases.
“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,” says Krishnakumar (KK) Davey, president of thought leadership for CPG and retail, 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.”
- Prices in perimeter categories were 9.6% higher in September compared to the year-ago period; however, year-over-year inflation in these categories has declined every month since February.
- Volume data shows many consumers are tightening their belts and forgoing purchases in categories that have seen significant price increases. For example, sales volumes in the deli service lunchmeat, fresh finfish, frozen dinners and shelf-stable dinners categories each declined over 10% in September.