Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
The Consumer Price Index (CPI) rose 0.2% in August, the same bump as July, the Bureau of Labor Statistics reported this week. The annual increase was 2.5%, the lowest rate since February 2021, down from July’s 2.9% rate.
Core CPI—which excludes food and energy prices—was higher than expected month-over-month, rising 0.2% monthly, but in line with forecasts at its 3.2% annual rise.
National Economic Advisor Lael Brainard said in a statement that August’s CPI indicates “we are turning the page on inflation,” nearing pre-pandemic levels.
Food away from home rose 0.3%, while food at home was flat. Among the major grocery indexes, inflation was down for cereals and bakery products (0.1%); fruits and vegetables (0.2%), and nonalcoholic beverages (0.7%). Meanwhile, inflation rose for meats, poultry, fish, and eggs (0.8%); and dairy and related products (0.5%). Other food at home, encompassing items like sugar and sweets, fats and oils, condiments and spices, soups, and snacks, dropped 0.3%.
In other retail categories: Apparel prices rose 0.3%, in line with its annual rise; alcohol beverage prices were flat, but elevated 1.9% year over year; and prices for personal care products dropped 0.4%, up 0.2% annually.
Zoom out: As cash-strapped consumers have felt the pressure of inflation, retailers have been working to offer lower-priced items. Amazon this week rolled out Amazon Saver, a “no-frills” grocery brand with prices largely under $5. It joins a number of retailers which have introduced new private label brands, like Walmart, CVS, and Target, the latter of which also cut prices on 5,000 items earlier this year.
The Department of Commerce is set to release retail sales data for August on September 17.