04.30.24
Inflation is on the mind of nearly every consumer across the US, especially when they head to their local supermarket and grocery store for food and personal care and home care staples.
Catalina has released data on the aggregate price increase of common grocery categories in the US. According to its Shopping Basket Index, which analyzes the cost fluctuations of products in 10 common product categories, grocery inflation has dropped considerably from a year ago in 10 key categories, but devil is in details.
Catalina reported 3% average Q1 inflation rate, which is on par with the overall 3.5% inflation rate reported in March's US Consumer Price Index (CPI). When compared to Q1 2023, the rate of inflation fell in every category, dropping anywhere from 18% for yogurt to 6% for deodorants in Q1 2024. (The list shows select categories for comparison.)
"While this is positive news overall, it's important to remember the impact isn't felt evenly. Value-conscious shoppers are still grappling with significant price increases on essential items, even as the broader inflation rate cools,” Wesley Bean, US chief revenue officer at Catalina.
Source: Catalina Shopper Intelligence Average Price Change Q1 2024 vs Q1 2023, Q1 2023 vs Q1 2022
"When we drill down to individual products within these 10 categories, we gain insights as to why shoppers say they continue to feel the impact of higher prices, even though the rate of inflation has fallen considerably from six months ago," said Bean. "Families with children and on-the-go consumers are some of the lifestyle categories continuing to feel the pinch."
According to Catalina, value brand prices are rising faster than their premium counterparts in some categories. For example, value brand categories continue to cost more than YAGO, including detergent (+2%). Premium brand prices in detergent fell -1%, according to Catalina.
For families with children, many popular items remain well above the average +3% inflation rate for Q1 2024. These include baby laundry detergent (+21%), and baby wipes (+6%). The cost of name brand baby laundry detergent rose +21% in Q1 2024, while private brand products fell -2%. During the same period, private brand baby wipe prices rose 11%, while brand name products increased 6%, finds Catalina.
"Because inflation rates continue to vary by grocery category, retailers and brands have an opportunity to refine their shopper marketing strategies to attract brand switchers and remind loyal shoppers of the value of their brand," said Bean.
Catalina has released data on the aggregate price increase of common grocery categories in the US. According to its Shopping Basket Index, which analyzes the cost fluctuations of products in 10 common product categories, grocery inflation has dropped considerably from a year ago in 10 key categories, but devil is in details.
Catalina reported 3% average Q1 inflation rate, which is on par with the overall 3.5% inflation rate reported in March's US Consumer Price Index (CPI). When compared to Q1 2023, the rate of inflation fell in every category, dropping anywhere from 18% for yogurt to 6% for deodorants in Q1 2024. (The list shows select categories for comparison.)
"While this is positive news overall, it's important to remember the impact isn't felt evenly. Value-conscious shoppers are still grappling with significant price increases on essential items, even as the broader inflation rate cools,” Wesley Bean, US chief revenue officer at Catalina.
Q1 2024 vs. Q1 2023 US Inflation Rate by Category
Category |
Q1 2024 |
Q1 2023 |
Hand & Bath Soap | 8% | 17% |
Deodorants | 6% | 12% |
Cereal | 5% | 21% |
Soft Drinks | 4% | 19% |
Yogurt | 3% | 21% |
Paper Products | 2% | 9% |
Soaps & Detergents | 2% | 8% |
Coffee | 1% | 16% |
Frozen Vegetables | 1% | 16% |
Frozen Prepared Foods | 1% | 17% |
Overall | 3% | 16% |
Source: Catalina Shopper Intelligence Average Price Change Q1 2024 vs Q1 2023, Q1 2023 vs Q1 2022
"When we drill down to individual products within these 10 categories, we gain insights as to why shoppers say they continue to feel the impact of higher prices, even though the rate of inflation has fallen considerably from six months ago," said Bean. "Families with children and on-the-go consumers are some of the lifestyle categories continuing to feel the pinch."
According to Catalina, value brand prices are rising faster than their premium counterparts in some categories. For example, value brand categories continue to cost more than YAGO, including detergent (+2%). Premium brand prices in detergent fell -1%, according to Catalina.
For families with children, many popular items remain well above the average +3% inflation rate for Q1 2024. These include baby laundry detergent (+21%), and baby wipes (+6%). The cost of name brand baby laundry detergent rose +21% in Q1 2024, while private brand products fell -2%. During the same period, private brand baby wipe prices rose 11%, while brand name products increased 6%, finds Catalina.
"Because inflation rates continue to vary by grocery category, retailers and brands have an opportunity to refine their shopper marketing strategies to attract brand switchers and remind loyal shoppers of the value of their brand," said Bean.