Inflation Insights | Aug 2023 | Request the Report
In recent analysis, a prevailing pattern of diminishing inflation rates has emerged on the global stage. However, amidst this general descent in inflation, one nation, Germany, stands as an exception.
While countries globally witness a gradual reduction in inflation, we shine a spotlight on the trends within frozen categories, which have helped drive down inflation. With a notable 7% drop in inflation for Frozen Meals and a 6% decrease for Frozen Fruits & Vegetables, this sector stands out as a beacon of economic respite.
Effective and Everyday prices grew over the last 6 weeks. Effective Prices rose by 37 basis points while Everyday prices rose slightly more by 39 basis points. Most retailers had increases in both.
Overall CPG inflation continued to gradually fall, now at +5% from +8% in mid-May. The Edible and Perishables categories drove this reduction falling 5% and 3% respectively.
Within the Edible category, the Frozen sub-category experienced the most substantial decline, with inflation dropping by 6% over the past 11 weeks.
The most significant declines in inflation were witnessed in Frozen Fruits & Vegetables (-6%), Frozen Meals (-7%), and Shelf Stable Fruit (-6%).
Consumer trips have maintained the same level as the previous year, but noteworthy increases of 4% and 2% YoY have been observed in visits to Mass and Dollar channels, respectively.
Inflation is falling across most of Europe, except for Germany which remained the same from 6 weeks prior. The USA saw a minor drop; however it has the lowest rate of the 7 countries analyzed.
Regardless of external market conditions, the right combination of omnichannel competitive intelligence and Pricing Science can help you increase your margin, maintain consistent revenue growth, and increase customer loyalty.
- Leverage omnichannel comp monitoring and Machine-learning powered Product Linking to track your product catalog against like-item competitive offerings and respond to competitors’ online and store-level tactics.
- Use Price Image to objectively identify the items that most directly influence customer perception, then optimize these items to increase trips and satisfaction while defending margin across the store.
- Balance short-term profits with long-term success by optimizing prices toward Price Image and boosting trip frequency and share-of-wallet.
Click here to request access to the full report and learn how Engage3’s Price Optimization and Competitive Intelligence solutions can help you fuel sustainable growth in any market.