Food Inflation So Now What’s for Dinner

 

At the intersection of What’s for Dinner and food inflation the consumers is at a crossroad according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The question become rather than What’s for dinner; where can I buy dinner for less?

Once again inflation for at the grocery store aka food at home soared to 11.9% year over year in May.  Which is a level not seen since April 1979, the Bureau of Labor Statistics last week. And inflation in the overall U.S. economy, after retreating slightly in April, climbed again in May, to 8.6%. 

There was also inflation at restaurants and other foodservice venues hit a 40-year high in May, too, although the spike 7.4% wasn't as high as in grocery. Full-service meal prices rose 9% year over year; prices at limited-service restaurants climbed 7.3%. That’s right the consumer was stuck right in the middle.

Like a stick poking you in the eye it was Gasoline and housing that were forcing consumers to rethink how and where to buy dinner.  Gas prices were up 48.7% year over year, and rent/homeowners' rent equivalent prices were up more than 5%.

 In a Battle for Share of Stomach

Are You Winning?

There was no doubt that food was a top contributor to May's inflation acceleration: Last month's spike in grocery prices was higher even than the 40-year highs recorded earlier this spring, with food-at-home inflation having reached 10.8% in April and 10% in March.

Month to month, grocery prices were up 1.4% over April levels, the fifth consecutive month of a 1% or greater increase, the BLS reported. Once again, prices rose across the grocery store. Five of six food-at-home categories the BLS tracks saw year-over-year increases of more than 10%. The lone category to come in under 10% was fruits and vegetables, with prices rising 8.2% over the past 12 months. 

Among the grocery items seeing notably high inflation in May:

·         Eggs, 32.2%

·         Butter and margarine, 20.2%

·         Chicken, 17.4%

·         Citrus fruits, 16.1%

·         Milk, 15.9%

·         Coffee, 15.3%

·         Ground beef, 13.6%

·         Baby food, 12.9%

·         Rice, pasta and cornmeal, 12.8%

How long will it be before consumers can only afford to eat rice, pasta, and cornmeal? Are you looking for options to drive customers to your retail food outlet? We have options.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Does your messaging look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.