In their quarterly earnings reports on Thursday, snack giants PepsiCo and Conagra Brands reported lower revenue and unit sales, indicating consumers are increasingly paying attention to prices.
Government data shows the same: The Bureau of Labor Statistics reported that food prices increased only slightly last month.
"Consumers are choosing bargains and retailers are offering more bargain prices than in the last few years."
Though the economy is technically strong, prices for many items are still higher than before the pandemic and household debt has risen
Grocery prices have risen 18 percent since 2020, but they are stabilizing, according to the latest inflation report released Thursday.
The total cost of “food at home” rose only 0.1 percent in June compared to the previous month.
Prices of some key budget items are already falling: Fruit and vegetable prices fell 0.5 percent, while cereal and bakery products prices fell 0.1 percent.
esults from PepsiCo and Conagra show that consumers frustrated by rising prices are now spending less on established brands, particularly in the snack and soda section.