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Hvordan den stigende inflation giver kategoriplanlæggere hovedpine.

Inflation is on the rise. Consumers are feeling the pressure of price increases on everything from food and gas to furniture and automobiles. Newly published data shows the U.S. consumer price index (CPI) has risen 7.5% in the past 12 months, and this is having a real impact on the average pocketbook. But, did you know it’s also having a measurable impact on store shelves as well? And, no, I’m not talking about stock-outs.

Faced with rising costs and margin pressures, CPG manufacturers and retailers have been forced to increase prices. This trend began around July 2021, and we’re already seeing shopping behaviors change. A recent survey showed 49% of consumers plan to switch to lower-priced brands due to inflation concerns. With prices expected to rise throughout 2022 and shoppers more price-conscience than they were before the pandemic, this switch to lower priced brands and private label will likely continue. CPG manufacturers and national brands are responding by reducing package sizes to hide price increases from the average consumer.

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