Food inflation “remained stubbornly high” in the first quarter of 2024, although price increase in some categories reached new lows compared to a year ago, according to data analytics company Catalina.
The overall food inflation rate was 3% in the first quarter of 2024, down substantially from the 16% recorded for the same quarter a year ago, according to the report. The inflation rate dropped in all 10 categories from a year ago.
Meanwhile, value brands took a surprising turn with some increasing in cost faster than their premium counterparts, the report noted. Value brand bath tissue, for example, was up 6% for the quarter, while its premium counterpart was down 2%. Value detergent was up 2% compared to premium detergent, which was down 1%.
The Q1 results include:
- Hand and bath soaps: 8% in 2024 vs. 17% in 2023
- Deodorants: 6% in 2024 vs. 12% in 2023
- Cereal: 5% in 2024 vs. 21% in 2023
- Soft drinks and water: 4% in 2024 vs. 19% in 2023
- Yogurt: 3% in 2024 vs. 21% in 2023
- Paper products: 2% in 2024 vs. 9% in 2023
- Soaps and detergents: 2% in 2024 vs. 8% in 2023
- Coffee: 1% in 2024 vs. 16% in 2023
- Frozen vegetables: 1% in 2024 vs. 16% in 2023
- Frozen prepared foods: 1% in 2024 vs. 16% in 2023
“Our latest data shows grocery inflation has dropped considerably from a year ago in these 10 categories,” said Wesley Bean, U.S. chief revenue officer at Catalina, in a statement. “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.”
While main categories saw an overall drop, the inflation rate for some specialty items in those categories rose. For instance, cereal bars were up 13% in Q1. Similarly, read-to-drink coffee drinks were up 3% year over year, while regular coffee declined 1%, coffee pods dropped 2%, and instant coffee was down 3% for the quarter.
“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,” Bean said. “Families with children and on-the-go consumers are some of the lifestyle categories continuing to feel the pinch.”