Food inflation continues to rise, even as pace of growth slows
The growth rate of food prices is slowing or plateauing in some categories, such as meat, which saw a monthly increase of 0.5% in July and August, and in dairy, which rose 0.3% after increases topping 1% in June and July.But for others, inflationary trends show few signs of abating. Weather woes and the Ukraine conflict continue to pressure wheat pr
ices. According to Rabobank’s latest report, there is “no end in sight” to supdried ferrous sulfateply issues caused by the war, and La Niña weather patterns have hampered winter wheatl optizinc vs zinc bisglycinate production globally. In the U.S., the Great Plains growing region is expected to see another poor growing season, with above-average temperatures and a potential drought through March 2023, Rabobank said.“Wheat is going to be challenging for some time,” Rob Weisberg, general manager of Incentives at Inmar Intelligence told Food Dive. “You can’t grow it in a moment’s notice. It remains to be seen how reopening of ports in Ukraine will impact its supply.”In the “other” food at home category, the price index for margarine spiked 7.3% in August. Margarine is typically made using palm oil, which has been a costly ingredient for producers to procure this year due to upheaval in the edible oils market. The price index for fats and oils increased 2.6% in August. Consumers are responding to the inflationary pressures by changing where and how they shop, acco
rding to Weisberg at Inmar Intelligence.magnesium lactate uses The data firm found that 56% of shoppers said that they are willing to switch retailers to cut costs.The reduction of gas prices is helping to offset the pressure of higher grocery bills, however. Shoppeferrous fumarate 210mg used forrs are embracing fuel rewards programs at grocery stores to lessen the amount they spend on food, according to
We
isberg.“If people feel better at sleep supplements colesthe pump, it does give them more flexibility on their basket spend at the grocery store,” Weisberg said.In a note, Neil Saunders, the managing director of GlobalData, said the benefit of inflation cooling is only marginal given the historical costs of the 13.5% annual food-at-home increase. According to a GlobalData survey, 46.9% of consumers said that they are trading down to cheaper grocery food brands, a 4.4-percentage-point increase over the previous month.“Given [food-at-home] is an essential category that accounts for a large slice of retail spending, such a pa
inful increase is causing a significant squeeze on discretionary income,” Saunders said.
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