Pet meals inflation lingers however is decelerating, in accordance with John Gibbons of PetBusinessProfessor.com in his Might 2024 report.
Once more, this month, inflation is 50% beneath the nationwide charge, however again in January 2024 it was +52%.
‘Petflation’ fell from 1.7% in April 2024 to 1.6% in Might 2024.
“Costs had been +0.2% from April however had been +3.3% vs Might 23, down from +3.4% final month as a result of there was a much bigger Apr>Might value raise in 2023,” said Gibbons.
Pet meals and groceries had been the one classes with a value lower from April 2024.
The YOY nationwide Client Worth Index (CPI) charge of three.3% is down from 3.4%, simply 83% of the 22>23 charge and 38% of the 21>22. In most pet classes, the 23>24 charge is beneath the 22>23 charges.
In Might, pet meals costs had been down -0.1% from April.
2022 in comparison with 2024
- U.S. CPI – Costs are +0.2% from April. The YOY enhance is 3.3%, down from 3.4%. It peaked at +9.1% again in June 2022. The focused inflation charge is <2% so we’re nonetheless 65+% larger than the goal. After 12 straight declines, we had 2 lifts, a steady month, 2 consecutive drops, now 3 of 6 with drops, in accordance with Gibbons. The present charge is 17% beneath 22>23 however the 21>24 charge continues to be 16.7%, 73.9% of the entire inflation since 2019. Inflation was low in early 2021.
- Pet meals – Costs are -0.1% vs April and -1.1% vs Might 23, down from -0.1%. Now, they’re considerably beneath the Meals at Residence inflation charge, +1.0%.
“The YOY drop of -1.1% is being measured towards a time when costs had been 23.3% above the 2019 stage and the present lower continues to be beneath the -0.01% drop from 2020 to 2021,” stated Gibbons.
The 2021>2024 inflation surge has generated 99.1% of the entire 23.0% inflation since 2019.
YTD — 2022 in comparison with 2024
- U.S. CPI – The 23>24 charge is 3.3%, the identical as April, however down 38% from 22>23 and 60% lower than 21>22. It’s also 21% beneath the typical YOY enhance from 2019>2024, nevertheless it’s nonetheless 63% greater than the typical annual enhance from 2018>2021. 78% of the 22.7% inflation since 2019 occurred from 2021>24.
- Pet meals – YTD inflation is 1.6%, down from 2.2% in April and 89% lower than the 22>23 charge. Now, it is usually 72% decrease than 21>22 and 14% beneath the typical charge from 2018>2020. Pet Meals has the very best 22>23 charge on the chart and stays in 2nd place within the 21>24 charges. Deflation within the first half of 2021 saved YTD costs low then costs surged in 2022 and particularly in 2023. 94% of the inflation since 2019 occurred from 2021>24.
Replace: Pet meals producer value index (PPI)
Whereas the retail costs normally mirror the canine and cat PPI they peaked in Might 2023, fell barely in July>Aug, turned up in Sep/Oct, flattened in Nov, then fell in Dec>Feb 2024. In March 2024 they turned up and unexpectedly fell in Apr>Might. Coming regardless of a small 0.9% PPI raise in February and stability from March to Might 2024.
Canine canned/moist meals is the first driver within the PPI surge, together with a small February 2024 raise, in accordance with Gibbons.
Costs solely elevated <1% since March 2023, exhibiting 14 months of stability.
The “Different pet meals” class is -7.9% from Might 2023. The class continues to fall over time, compared to the 8.6% from Might 2021 and 24.0% from Might 2019.
