CPG Prices Continue to Rise, But Consumer Demand Remains Strong

• Consumer packaged goods (CPG) prices have been rising steadily in recent months, due to a combination of factors including inflation, supply chain disruptions, and the war in Ukraine.
• Some experts believe that CPG prices will eventually come down as consumers start to cut back on spending, but others believe that prices will remain high for the foreseeable future.
• In the meantime, companies like Kellogg and PepsiCo have raised their full-year forecasts as a result of price hikes.
• The May Consumer Price Index revealed that grocery prices rose 0.1% from the previous month and 5.8% year over year.
• Some categories, such as margarine, flour, bread, and sugar, have seen significant price increases.
• However, other categories, such as bacon, whole milk, and citrus fruit, have seen some price relief.
• Egg prices are also dropping, with the average retail cost per dozen dipping to $2.67 in May.

Here are some of the key points of the article:

• CPG prices are rising due to a combination of factors.
• Consumer demand for CPGs has remained largely consistent.
• Some companies are raising their full-year forecasts as a result of price hikes.
• Some categories of CPGs have seen significant price increases, while others have seen some price relief.