Coming off news that food-at-home prices cooled for the second straight month, a new study shows that the pace of inflation has been lower in the United States than other global markets. According to research from retail search engine Ubuy, the inflation rate in the United States was 8.5% on a 12-month basis compared to the international average of 18.2%.
Canada was just behind its southern neighbor, with an 8.9% average inflation rate, and Australia came in at 9%. The United Kingdom and the European Union were hit the hardest by soaring prices, each with a 19.6% yearly rate.
“Overall, the research highlighted just how drastically food costs have increased over the past five years – with many countries seeing increases close to, or even over, 50%,” Ubuy’s analysts concluded in the report.
Another new study released this week also showed geographic differences in food inflation. According to the latest Catalina Shopping Basket Index, the inflation rate in the U.S. slowed during the first quarter of the year, while prices remained fairly consistent in France, Germany and Italy during that time frame. The U.K. is experiencing the highest inflation rate in Europe, Catalina reported.
Researchers at Ubuy and Catalina also broke down inflation into categories and products. Ubuy’s data showed the price of eggs, bread, cooking oils and yogurt rose the most on a yearly basis. Eggs went up 36% compared to the previous year and shot up 82% on a three-year basis.
Likewise, Catalina found that yogurt prices spiked, up 18% in the first quarter of 2023. Other categories with double-digit increase in the United States in the opening months of the year included frozen foods (17%), frozen vegetables (16%), coffee (16%), cereal (21%) and soft drinks and water (19%).
“A number of factors have been driving up prices in Europe and the U.S., including the war in Ukraine, lingering supply chain disruptions, and rising aluminum, ingredient, labor and energy costs,” said Sean Murphy, chief data and analytics officer at Catalina. “In response, we’re seeing CPG marketers and retailers place more emphasis on promotions and price incentives and we’re working more closely with them to earn the loyalty of value-conscious shoppers with highly personalized offers.”