Prices in key grocery food categories remained stubbornly high in Q1 2024 while others dipped to new lows compared to the same period in 2023, according to a new report from Catalina Marketing. Value-conscious families and on-the-go shoppers felt the pinch of inflation more than most in Q1 2024, according to Catalina’s Shopping Basket Index, which analyzes the cost fluctuations of products in 10 common product categories in the U.S.

“Our latest data shows grocery inflation has dropped considerably from a year ago” in some categories, said Wesley Bean, US Chief Revenue Officer at Catalina. “While this is positive news overall, it’s important to remember the impact isn’t felt evenly. Value-conscious shoppers are still grappling with significant price increases on essential items, even as the broader inflation rate cools.”

The 3% average Q1 inflation rate from Catalina’s data was on par with the overall 3.5% inflation rate reported in March’s US Consumer Price Index (CPI).

“Because inflation rates continue to vary by grocery category, retailers and brands have an opportunity to refine their shopper marketing strategies to attract brand switchers and remind loyal shoppers of the value of their brand,” Bean said.

This article is an excerpt from the June 2024 issue of Supermarket Perimeter. You can read the entire Inflation feature and more in the digital edition here.