Consumers and inflation at the grocery store, 2017–2022

The recent high inflation across economic sectors in the United States has presented challenges and necessitated strategic changes for all parties involved, including consumers, manufacturers, retailers, and policymakers. This study aims to provide insights into consumer perspectives in the US food sector by examining changes in their perceived level of inflation and behavioral responses to rising grocery prices, as well as identifying the determinants behind these responses. Based on monthly consumer survey data collected from January 2017 to December 2022, the study reveals that the perceived level of food inflation has increased significantly alongside the rising Consumer Price Index, and the proportion of consumers who have responded by altering their grocery shopping behavior has also increased. The differences in perceived inflation levels and inflation-coping strategies can be attributed not only to various household characteristics but also to food consumption patterns. The findings highlight the need for tailored marketing strategies and policy initiatives by retailers, manufacturers, and policymakers. Among the various inflation–coping strategies, “buying lower priced brands” and “buying less food” have become particularly prevalent during the recent inflationary period, especially among low-income households and those with higher levels of perceived inflation

Productivity · Consumer Market Behavior and Pricing · Consumer Retail Behavior Studies · COVID-19 Pandemic Impacts