A new report from Jacksonville, FL-based Acosta Inc. shows grocery prices have been increasing steadily over the past five years, thanks to increasing costs from manufacturers.
The report, The Pricing Conundrum, explores best practices for price increase acceptance at retail. Total store price increases averaged 11.8% from 2017 to 2018, tracking behind the 2.4% consumer price index in the U.S.
While meat, seafood, pet care, deli, baby care and household care showed above average price increases, Acosta says produce, grocery, dairy and bakery were below average.
Input costs, such as aluminum, paper pulp, diesel fuel, gasoline and a truck driver shortage are some of the primary reasons for price increases at retail.
When faced with higher prices, Acosta found consumers and retailers preferred a price increase to a package size decrease. Fifty percent of shoppers notice reductions in package size, the report said, and 80% said they accept food price increases when external cost factors rise.