Grocery price inflation is a hot topic but how is this playing out at category level?

And are price rises by category consistent across the different players?

Inflation is leading to a huge range of differing price changes by category

Around the mean of a 4.9% increase in the prices paid in 2022 by category in W Europe, there is a large range – from lower prices in some cases up to over 40% in others. Despite this FMCG volumes remain strong in the long term (See Pick of the Week 32/2022).

Private Label and brand price rises by category are not strongly correlated and PL prices are rising faster overall

The mean increase in prices paid for Private Label this year is 6% – higher than the overall mean. This is driven by larger increases in more categories – and these higher prices are helping to drive share. The inconsistency between PL and Brand price rises shows that there is leeway for the different players.

Discounter and total category price rises are correlated but Discounter prices are rising faster

The mean increase in prices paid by category in Discounters this year is 7.4% – higher than the overall mean. This is driven by larger increases in more categories – and these higher prices are a factor in share growth.