PowerPoint Presentation

COMMODITY INSIGHTS

Should Cost Analysis Findings from analysis of P8 items submitted for future cost changes

Consumer Price Index* July 2022 CPI +8.5% YOY

Fully Warranted 31%

Partially Warranted 34%

Not posted yet

3,487 Items Analyzed by Should Cost in P8: 61% A-Brands, 18% Fresh, 21% Private Brands

Not Warranted 35%

*Source: Bureau of Labor Statistics CPI of All Items (includes Food and Energy) report

Commodities On The Move

Inflation Forecast for Key Commodities

HDPE (Packaging) -19% Increased production capacity.

70.0%

Steel % Flat High demand, tariffs

62.7%

60.0%

Coffee +15% Drought and a freeze in Brazil

Aluminum +26% High demand

50.0%

37.4%

36.1%

40.0%

34.8%

Chicken Deli WOG +36% Labor shortage, an industrial shift to higher- value products China/W Coast US Container rates -31% Dropping demand, improved port congestion.

Diesel +49% High crude oil prices

30.0%

23.5%

22.6%

20.3%

18.3%

15.8%

20.0%

15.1%

Soy Oil +8% Favorable weather in the US.

10.0%

1.0%

0.0%

Flour +31% Drought in wheat-growing regions, Ukraine.

-2.9%

-10.0%

Beef

Pork

Turkey

Chicken

Corn

Soybean Meal

2021 Inflation 2022 Inflation

SOURCE: EMI, Inc.

7

Made with FlippingBook - Online catalogs