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The changing cost of the grocery cart: The impact of inflation on groceries

Consumer packaged goods manufacturers use smaller pack sizes, alternative blends, and supplier diversification to manage inflation and supply risks, avoiding direct price hikes.

  • In Recent years, consumer packaged goods manufacturers have deployed Price Pack Architecture to avoid price hikes while protecting margins and shelf presence, The Barcode Group found with Stacker review.
  • Tariff changes and non-economic events have detached some grocery prices from broader inflation, with avian flu causing a 59% year-over-year jump and coffee spiking 40% annually due to tariffs before recent drops.
  • The Consumer Price Index rose 0.3% month-to-month between July and August 2025, with grocery prices up 2.7% year-over-year and coffee reaching $9.13 per pound by September.
  • Relying only on price hikes increases vulnerability to private‑label competition, as manufacturers cannot reliably pass higher input costs to consumers, risking margin shrinkage and shopper loss.
  • With the next 18 months, CPG brands should pivot from straight price hikes to structural changes like Price Pack Architecture, supplier diversification, alternative formulations, and retailer collaboration to defend premium positioning.
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The changing cost of the grocery cart: The impact of inflation on groceries

The Barcode Group reports on the impact of inflation, which has been a significant concern for Americans over the past several years. From eggs to coffee, see how inflation has impacted the cost of different grocery staples.

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The Billings Gazette broke the news in Billings, United States on Monday, January 5, 2026.
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