Inflation in most FMCG sectors is on the rise

The Grocery, Pet, and Household sectors have all seen an increase in the rate of inflation in the most recent week, though Household inflation continues to under-index vs. YAG. Health & Beauty inflation decreased in the most recent week, but remains elevated vs. a year ago.

Highlights for the four week period ending March 10:

  • Grocery prices were up 2.94% vs. YA, an increase from the prior week.
  • Health & beauty prices were up 7.70% vs. YA, a decrease from the prior week.
  • Prices for household items were down -2.38% vs. YA, an increase from the prior week.
  • New! Pet prices were up 0.52% vs. YA, an increase from the prior week.

Online and Drug grocery inflation are below 2023 levels

Gas & Convenience grocery inflation is once again on the rise, while the Online channel has seen a significant decrease in the rate of grocery inflation week-over-week. The rates of Mass, Food, and Drug grocery inflation remain relatively stable week-over-week.

The rate of grocery inflation is diverging across demographic groups

While Gen Z grocery inflation continues to under-index vs. a year ago, the rate of grocery inflation has increased in the most recent week, while grocery inflation remains comparatively steady for other generations. Grocery inflation has decreased for low-income Canadian consumers, remained steady for high-income consumers, and increased for middle-income consumers in the most recent week.

COVID-19 Impact on Consumer Behaviour

For past insights into Canadian consumer behaviour and sentiment as it relates to the COVID-19 pandemic, check out our survey insights from March 2020 through May 2022.

See the insights.

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