Financial performances of companies during the past year-plus have largely relied upon price increases at the expense of volume sales. That approach is rapidly running out of road, and the limits of price elasticity will further slow increases. Food and beverage prices in 2023 are 25 percent to 30 percent ahead of 2019, per 210 Analytics. Inflated prices will continue to impact consumer-shopping behaviors, even amid pockets of deflation in certain categories – namely eggs, chicken and seafood – and expectations of reduced prices in other grocery goods in the coming year.
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Billy Roberts
Billy Roberts is a lead industry analyst with the Knowledge Exchange Division of CoBank.
CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. It’s a member of the Farm Credit System. Visit www.cobank.com for more information.
