Consumer prices up 12.5% in June as consumers spend more to purchase less
Fetch, America’s No. 1 consumer-rewards app, today released its June Fetch Price Index report, which shows consumer demand declining for the second consecutive month amid record-setting consumer prices. Inflation remains high, but June also brought the first signs that the cost of food and household goods may be flattening after 18 consecutive months of increasing prices.
The Fetch Price Index offers a unique, data-rich view into how consumer prices are affecting shopper behavior by analyzing a panel of 405,101 shoppers and tracking 226 million in-store and e-commerce purchases over the last 24 months. This is the second installment of the report, which debuted in June and will be released on a monthly basis.
Key findings from the report include a 3.5% drop in units per household in June compared to 2021, which comes after a 6.7% year-over-year decrease in May. The average grocery spend per household remains elevated, even though shoppers are bringing fewer goods into their homes – an indication that consumers are continuing to feel the impact of inflation.
Trips per household in June remained above the 2021 levels, but are gradually slowing in year-over-year growth. And while total demand fell, shoppers are buying more private label brands – units per household in this category increased significantly for the first time in June, up 12.4% over last year. As consumers continue to grapple with rising prices, they are bringing less into the house, and their regular purchase mix is in flux as they trade down to lower price points.
“Response to inflation is not a one size fits all approach. Household demand differs within certain categories despite similar price increases and brands must optimize pricing and portfolio strategy to win and identify categories that are at most risk of substitution or categories where consumers are willing to spend. After all, value is perceived differently across categories and even brands within a category,” said Wes Schroll, Fetch Founder and CEO. “With down trading becoming inevitable, brands will have to leverage accurate and precise data led insights to understand evolving category sensitivities and value perception from consumers, to grow and maintain market share.”
The Fetch Price Index report was created to provide further context to the findings that are published monthly in the The Bureau of Labor Statistics Consumer Price Index report. By reviewing shopper behavior at an item-level, Fetch can capture, in real time, the true state of inflation and the impact on consumers, retailers and brands. The report will be published monthly on the Fetch blog, Unleashed.
Click here to view the full report.