Food Inflation by Department -Canada and the United Sates, June 2023

Open Forum
1
Though the rate of inflation in Canada and the United States has eased, CPG inflation continues to ride high in both Canada and the United States. This special report summarizes the CPG departmental rate of inflation for Canada / the United States.
Overview:
  1. Canada's inflation rate eased to 2.8% June 2023 CPG inflation rate is running high at 7%.
  2. US inflation rate eased to 3% June 2023 CPG inflation rate is running high at 6%
  3. Centre of store department price increases, Canada and the US continue to heat up compared to perimeter departments.

Brand Implications - Sales Perspective:
  1. With ongoing wallet shifts to discount retailers, brands must be competitively in discount and traditional grocers.
  2. With consumers seeking the best deal possible, it is imperative brands incorporate a promotional allowance into their pricing strategy so they may discount their retails during key selling periods.
  3. With ongoing wallet shifts to private label, it is imperative consumers love the taste of the product and perceive great value for their purchase.
2

Hi Richard,

Thanks for sharing these heat maps, its interesting to see so much difference between departments. I assume with overall inflation #'s coming down that food retailers will be aggressively pushing their suppliers to eliminate price increases moving forward, especially in the categories that currently have double digit inflation. I'm curious what your thoughts are, and others who are selling to retail?

3

July 2023 - Canada, US Grocery Inflation by Department.pdf (332 KB)