CPG Prices Continue to Rise, But Consumer Demand Remains Strong

July 5, 2023
RetailBrew
  • Consumer packaged goods (CPG) prices have been rising steadily in recent months, due to a combination of factors including inflation, supply chain disruptions, and the war in Ukraine.
  • Some experts believe that CPG prices will eventually come down as consumers start to cut back on spending, but others believe that prices will remain high for the foreseeable future.
  • In the meantime, companies like Kellogg and PepsiCo have raised their full-year forecasts as a result of price hikes.
  • The May Consumer Price Index revealed that grocery prices rose 0.1% from the previous month and 5.8% year over year.
  • Some categories, such as margarine, flour, bread, and sugar, have seen significant price increases.
  • However, other categories, such as bacon, whole milk, and citrus fruit, have seen some price relief.
  • Egg prices are also dropping, with the average retail cost per dozen dipping to $2.67 in May.

Here are some of the key points of the article:

  • CPG prices are rising due to a combination of factors.
  • Consumer demand for CPGs has remained largely consistent.
  • Some companies are raising their full-year forecasts as a result of price hikes.
  • Some categories of CPGs have seen significant price increases, while others have seen some price relief.

Recent News