Rising fuel costs may further drive up inflation
A report by 210 Analytics, a San Antonio-based market research and marketing strategies firm, warns about a possible rise in food inflation as fuel prices continue to surge.
The study, with data provided by Circana, puts the share of meals prepared at home at almost 77% average in August, meaning that most U.S. shoppers are looking at homemade meals to reduce spending.
The report also shows that, in a bid to reduce waste and expenditure, shoppers are “doing more with leftovers and using more simple ingredients leading to deli, dairy, and bakery excelling.”
“We typically see a drop in the share of home-prepared meals during the summer months,” says Jonna Parker, team lead of fresh with Circana.
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Price per unit across all foods and beverages, including supermarkets, club, mass, supercenter, drug, and military, increased by 3.6% in August, the study says.
“However, 76.8% marks a multi-year low in our monthly shopper survey and restaurants saw strong engagement with on-premise dining (53% of consumers), takeout (50%), and delivery (20%),” Parker adds.
Supermarket News reports that 94% of U.S. consumers are still worried about the cost of food, which has experienced a significant upward trend in recent years.
“A big question mark will be gasoline prices, which seem to be rising again and have always had a tremendous negative impact on grocery spending,” says 210 Analytics President Anne-Marie Roerink.