By Tonya Garcia
Grocery-price inflation reached record highs in June, experts say, and that could make food items a hot seller on Amazon Prime Day.
Consumer insights company Numerator found that grocery-price inflation reached 15.1% in June. Grocery inflation has picked up steam as the year has progressed, rising from 7.4% at the beginning of the year.
The retail cost of frozen meat soared 28% last month. Beverages were the most impacted category, with five categories ranked among those with the top year-over-year inflation rates, including water (up 20%), milk and milk substitutes (up 17%), and juices (also up 17%).
The Adobe /zigman2/quotes/200389143/composite ADBE -0.87% Digital Price Index data released on Tuesday show that, while online inflation slowed in June, with prices up 0.3%, online grocery inflation hit a record 12.44% on an annual basis.
The Adobe index is modeled after the consumer price index, calculated by the Bureau of Labor Statistics, while Numerator uses a different set of data in its calculations, including purchase data compiled from its panelists.
U.S. inflation, as gauged by the CPI, reached a 41-year high of 9.1% in June , according to the latest numbers.
“As the cost of everyday goods continues to rise, consumers are shopping around to find value,” said Eric Belcher, chief executive of Numerator, in a statement. “Many of these shifts, including high-income households trading down to dollar stores, are unexpected.”
The inflation rate for household items has slowed, which can perhaps be partly attributed to Amazon /zigman2/quotes/210331248/composite AMZN -3.01% Prime Day deals, according to Numerator. The inflation rates for things like facial tissues (up 32%), household batteries (up 27%) and trash bags (up 21%) have gained steam. For items like toilet paper (up 16%) and paper towels (up 11%), the price rise has been less sharp.
NielsenIQ says consumers are being pressured by higher prices, but 64% of consumers plan to shop during Amazon Prime Day, particularly for household items. And many will also be looking for deals on groceries.
“With more constrained consumers feeling the pressure from rising costs of goods, they are determined to cut down their expenses by finding the best price deals online,” NielsenIQ wrote in a June report on global online shopping events.
The Consumer Staples Select Sector SPDR Fund /zigman2/quotes/200697959/composite XLP -1.70% is down 5.9% to date in 2022, while the broader S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.72% has slumped 20.8%.