Inflation-Weary Shoppers Hunting for Deals Are Turning to Cheaper Brands

U.S. consumer price inflation surged 9.1 percent over the past 12 months to June, the fastest increase since November 1981, according to government data released on July 13, 2022. Angela Weiss/AFP via Getty Images

More American consumers across the country are purchasing cheaper store brands at supermarkets due to rising grocery prices, adding pressure to the big food brands.

Purchasing Cheaper Store Brands

The trend has been in the making for years, but it’s now starting to hit traditional brands like Kellogg and General Mills where it hurts. Two of the biggest food companies by market capitalization have seen their stock prices drop by more than 15 percent over the past year.

The major change in spending habits began in March with the sudden spike in gas prices and the highest level of inflation in 40 years.

What Does Inflation Tell?

Inflation is a sign that consumers are feeling less wealthy, and they’re changing their spending habits to reflect this. In the case of food, it means buying cheaper brands instead of name-brand products that used to be considered necessities.