Update: CPG prices for many categories continue to rise, while some dip

Companies continue to post growing sales amid price hikes.

article cover — Dianna “Mick” McDougall, Photo: Getty Images

June 29, 2023

· less than 3 min read

In March, Retail Brew looked at continually skyrocketing CPG prices, and spoke with industry experts about when—if ever—they’d come back down, especially as many of the big CPG companies reported record sales and profits on the back of these price hikes:

“I don’t think that corporations can get away with price increases forever, for most goods, because eventually consumers can actually cut back. It just takes some time,” Chris Becker, senior economist at economic policy group Groundwork Collaborative, said. “Eventually, they have that concern that they will start losing that…volume.”

Update: Since then, consumer demand has remained largely consistent (though some have tweaked their shopping habits). Companies like Kellogg and PepsiCo have raised their full-year forecasts as a result of price hikes. PepsiCo raised prices 16% in Q1, and said it would raise prices in some areas, after claiming it wouldn’t earlier in the year.

The May Consumer Price Index revealed grocery prices rose 0.1% from the previous month and 5.8% year over year. Categories like margarine, flour, bread, and sugar—plus classic summer condiments ketchup and mustard—continue to see price increases.

Foods like bacon, whole milk, and citrus fruit have seen some price relief. Egg prices are dropping, too. Wholesale egg prices, which saw peaks of $5 per dozen, are now between $0.99 and $1.39, with the average retail cost per dozen dipping to $2.67 in May, per the Bureau of Labor Statistics.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.