A study from Chicago-based data group Numerator has found inflation is having a significant impact on prices across five channels.
Of the five channels Numerator tracked in its study of 14,000 consumers, grocery saw the largest increases in price due to inflation. The study found the average price consumers paid for a single grocery item was up 7.1% in October vs. year ago and up 11.6% when compared to 2019.
Other categories that showed price increases included health and beauty up 5.7%; baby products up 4%; household goods rising 3.7% and pet products increasing an average of 1.5%
When it came to retail channels, price increases were most significant in the mass channel. Mass was found to have an 8% average rise in prices, while food and dollar channels rose an average of 7.7%. Club stores showed the smallest price increases with 4.9%.
Numerator’s data found consumers are already searching for lower prices and have started to change their buying habits and private brands might be their brand of choice.
One in five consumers plan to switch to less expensive brands, and another 17% will shop at different retailers, according to the study, which also found nearly nine in 10 consumers intend to change their buying behavior if prices continue to rise.
Consumers are also considering cutbacks by switching package size or shopping less. The study found 8% plan to buy in bulk, while another 7% plan to buy smaller package sizes.