SOURCE: ECRM

ECRM

December 07, 2011 15:39 ET

ECRM's Promotional Report Shows Food Prices Are Expected to Remain High Through December

CLEVELAND, OH--(Marketwire - Dec 7, 2011) - This week ECRM released its monthly Promotional Pricing report, tracking U.S. food prices promoted in retail circular ads. As expected, November food prices are up vs. year ago across most categories. A market basket of common food staples shows promoted pricing up 11% vs. November, 2010 and up 2% vs. October, 2011.

Meats, poultry and seafood showed higher promoted prices vs. year ago across 17 of the 19 products measured. Many beverage and dairy products like soda, milk and eggs show higher promoted prices vs. November of 2010, but lower than the previous month, October, 2011.

While price increases are seen across most food categories, there are exceptions. Fresh produce was one department with a mix of both higher and lower promoted prices. Produce categories with higher prices for November promotions vs. year ago include bananas (+18%), broccoli (+11%), and grapes (+9%). Promoted prices were lower for strawberries (-16%), oranges (-5%), and lemons (-16%).

According to ECRM Senior Promotions Analyst, Jason Marshall, "We expect these higher food prices to continue into 2012, but aggressive retail promotions for fresh fruits and vegetables may help to keep produce prices in check through January as shoppers traditionally look for healthier food choices."

The November Promotional Pricing report also shows the strong correlation of promoted prices to the Consumer Price Index (CPI). Both retailers and manufacturers use this as an early look at pricing before the CPI numbers are released later in the month.

For access to ECRM's November Promotional Pricing report, visit their report library at www.PromotionalReflections.com.

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