Impact of Inflation on Consumer Behavior

SUMMARY

IMPACT OF INFLATION ON CONSUMER BEHAVIOR

The U.S. economy is proving resilient against inflation. Unemployment remains low and dollar sales of CPG products remain strong. But where will consumers spend in 2023? And how will their behavior change from pandemic-era trends?

This IRI report provides an overview and outlook on inflation’s impact on consumer behavior.

HIGHLIGHTS

• The U.S. economy has proven resilient and consumer expenditures remain strong, with most spending growth going to services rather than goods.
• At-home food spending remains strong, with center store sales up 11.1% and perimeter dollar sales up 6.3% in Q4 2022.
• Sales of premium products, which drove growth during the height of the pandemic, are easing and sales of private label products are increasing.
• Promotions for food and beverage products, especially in perimeter departments, are increasing.

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