Higher food prices continue to change the way Americans shop, according to a new report from CoBank’s Knowledge Exchange. The report says food prices are up 2.7 percent from a year ago and about 26 percent higher than five years ago, prompting more consumers to switch to lower-cost store brands, shop at discount retailers, or simply buy fewer groceries.
CoBank economist Billy Roberts says, “Food price increases are proving to be the definitive, everyday stressor for consumers, and they’re responding decisively by choosing lower-cost options like private label brands, shopping at discount retailers, or simply buying less.”
The report says retailers are responding with price rollbacks and value promotions, while food manufacturers are focusing on affordability to help offset higher production costs. CoBank also notes inflation, elevated energy prices, and higher interest rates continue to pressure the overall economy, with many economists now expecting borrowing costs to remain higher for longer than previously anticipated.
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